Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
14 Dec 2023
Case Brief
By an order dated November 17, 2023, RBI imposed a monetary penalty of ₹2.00 lakh on The Patan Urban Co-operative Bank Limited, Satara, Maharashtra. RBI said the bank contravened Section 26A read with Section 56 of the Banking Regulation Act, 1949 and failed to comply with directions issued on the Depositor Education and Awareness Fund because it had not transferred eligible amounts within the prescribed period. The penalty was imposed after statutory inspection, consideration of the bank’s reply, and oral submissions at the personal hearing.
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. The statutory inspection and subsequent examination found that the bank had not transferred the eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, amounting to contravention of Section 26A read with Section 56 of the BR Act and non-compliance with RBI directions on the Fund.
Operating Impact
The bank must bear the ₹2 lakh penalty; the release does not describe any additional operational restriction or suspension. The action serves as a regulatory sanction for past non-compliance and does not state any forward-looking cap on the bank’s business or services.
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 2.00 L
- Order Date
- 17 Nov 2023
- Effective From
- 17 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank