The Akola Janata Commercial Co-operative Bank Limited, Akola

RBI imposed a monetary penalty after a statutory inspection and show-cause process found that the bank had contravened Section 26A read with Section 56 of the Banking Regulation Act, 1949 and had not complied with certain RBI directions on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. The sustained charges included failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and failure to settle claims and release payments to survivor(s)/nominee(s) of certain deceased depositors within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

The bank must bear the monetary penalty and address the compliance gaps identified by RBI, especially around transfer of unclaimed deposits to DEAF and timely settlement of claims by nominees/survivors of deceased depositors. The action does not itself restrict operations, but it signals continued supervisory scrutiny and potential for further RBI action if deficiencies persist. Depositors and claimants are the main stakeholders affected by the underlying compliance failures.