Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Dec 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Panchkula Central Co-operative Bank Ltd., Haryana by order dated November 29, 2024. The penalty was imposed after a NABARD inspection and a show-cause process, and RBI held 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.
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 NABARD statutory inspection and supervisory findings showed non-compliance. The sustained charge was that the bank did not 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 absorb the penalty and continue operating subject to normal regulatory oversight. The release does not describe any operational restriction, but it signals continued supervisory scrutiny for compliance failures relating to unclaimed deposits and related statutory transfers.
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 5.00 L
- Order Date
- 29 Nov 2024
- Effective From
- 29 Nov 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank