Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Jun 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Bathinda Central Co-operative Bank Ltd., Bathinda, Punjab by an order dated May 30, 2025. The penalty was levied after a NABARD statutory inspection and a subsequent show-cause notice process, which concluded that the bank had contravened Section 26A read with Section 56 of the Banking Regulation Act, 1949 by failing to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. RBI stated that the penalty is based on statutory compliance deficiencies and does not pronounce on the validity of customer transactions.
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 and a show-cause process. RBI found that The Bathinda Central Co-operative Bank Ltd. had not transferred eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed timeframe, amounting to contravention of Section 26A read with Section 56 of the BR Act.
Operating Impact
The bank must bear the Rs 3 lakh penalty, and the action may also leave open the possibility of further RBI action because the order is without prejudice to other proceedings. There is no stated operational restriction on the bank from this release, but the compliance lapse signals expectations around timely transfer of unclaimed amounts to the depositor fund.
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 Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 30 May 2025
- Effective From
- 30 May 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank