Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
27 Mar 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Standard Urban Co-operative Bank Ltd., Aurangabad, by order dated March 19, 2024. The penalty followed a statutory inspection and show-cause process in which RBI found that the bank had not transferred the eligible amount to the Depositor Education and Awareness Fund within the prescribed time, amounting to contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. RBI stated that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection (with reference to the bank's financial position as on March 31, 2022) and subsequent supervisory process. The bank was found to have failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed due date, constituting contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must absorb the monetary penalty and ensure future compliance with the Depositor Education and Awareness Fund transfer requirements and other applicable BR Act/RBI directions. The action does not itself impose an operational restriction, but it signals supervisory concern and may be followed by further RBI action if non-compliance continues.
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 50,000
- Order Date
- 19 Mar 2024
- Effective From
- 19 Mar 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank