Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
27 Feb 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Business Co-operative Bank Ltd., Nashik, Maharashtra by order dated February 24, 2025. RBI said the penalty was imposed after a statutory inspection and a show-cause notice, and that the sustained charge was the bank's failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, in 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.
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 and show-cause process. The sustained charge was that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, in contravention of Section 26A read with Section 56 of the BR Act.
Operating Impact
The bank must bear the monetary penalty, and RBI's action signals supervisory non-compliance on unclaimed depositor funds. The release does not announce any operating restriction, but it leaves open the possibility of further regulatory action by RBI.
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 1.00 L
- Order Date
- 24 Feb 2025
- Effective From
- 24 Feb 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank