Recorded RBI impact
Fine: Rs 2.50 L
Monetary penalty · Fresh imposition
Published by RBI
10 Oct 2024
Case Brief
By an order dated October 01, 2024, RBI imposed a monetary penalty of ₹2.50 lakh on Sonbhadra Nagar Sahkari Bank Limited, Sonbhadra, Uttar Pradesh. The action followed RBI's statutory inspection as of March 31, 2023 and was based on a sustained charge that the bank failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, constituting contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. RBI stated that the penalty was imposed after considering the bank's reply, oral submissions, and additional submissions.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found that the bank had not transferred the eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. The penalty was levied for contravention of section 26A read with section 56 of the Banking Regulation Act, 1949, under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act, after considering the bank's reply, oral submissions, and additional submissions.
Operating Impact
The bank must bear the monetary penalty, and the finding highlights a compliance lapse in transferring eligible amounts to the Depositor Education and Awareness Fund. The order does not itself impose an operational restriction, but RBI noted that the penalty is without prejudice to any other action that may be initiated.
Regulatory Basis
- section 26A read with section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 2.50 L
- Order Date
- 1 Oct 2024
- Effective From
- 1 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank