Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
22 Aug 2024
Case Brief
By an order dated July 12, 2024, RBI imposed a monetary penalty of Rs 50,000 on The Nashik Jilha Mahila Sahakari Bank Ltd, Nashik, Maharashtra. The penalty was imposed after statutory inspection and supervisory findings showed that the bank had failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed time period, amounting to contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949. RBI considered the bank's reply and oral submissions before finalizing the penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection and supervisory review found non-compliance with statutory provisions. The sustained charge was that the bank did not transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed time period, contravening section 26A(2) read with section 56 of the Banking Regulation Act, 1949. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act.
Operating Impact
The bank must bear the monetary penalty, and the order signals regulatory non-compliance on depositor-fund transfer obligations. The release does not indicate any operational restriction on the bank's business, and RBI notes that further action may still be initiated separately.
Regulatory Basis
- section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act)
- section 47A(1)(c) read with section 46(4)(i) and section 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 12 Jul 2024
- Effective From
- 12 Jul 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank