Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
12 Jun 2023
Case Brief
By an order dated June 05, 2023, RBI imposed a monetary penalty of ₹2.00 lakh on Telangana State Cooperative Apex Bank Limited, Hyderabad. The action followed a statutory inspection by NABARD that found the bank failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, amounting to contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then confirmed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection by NABARD found that the bank had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed time. After considering the bank's reply and oral submissions, RBI concluded that the contravention of section 26A(2) read with section 56 was substantiated.
Operating Impact
The bank must absorb the monetary penalty but the release does not impose any fresh operational restriction. The finding concerns regulatory compliance and does not affect the validity of customer transactions or agreements.
Regulatory Basis
- section 26 A (2) 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 2.00 L
- Order Date
- 5 Jun 2023
- Effective From
- 5 Jun 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank