Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
22 Apr 2024
Case Brief
RBI has imposed a monetary penalty of ₹2.00 lakh on The Fatehabad Central Cooperative Bank Limited, Fatehabad, following supervisory findings from a NABARD inspection. The bank was found to have contravened section 26A(2) read with section 56 of the Banking Regulation Act, 1949 by not transferring eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time limit. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then passed the penalty order on March 31, 2024.
Why RBI Acted
After a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2022, RBI found that the charge of not transferring eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time limit was sustained. The penalty was imposed for contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949, under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must absorb the ₹2 lakh penalty and may also face any other action RBI chooses to initiate separately. There is no stated restriction on its ongoing operations or customer access in this release, but the finding signals a compliance lapse around unclaimed deposits and depositor protection obligations.
Regulatory Basis
- section 26A (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
- 31 Mar 2024
- Effective From
- 31 Mar 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank