Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Dec 2024
Case Brief
By an order dated November 29, 2024, RBI imposed a monetary penalty of ₹5.00 lakh on The Patiala Central Co-operative Bank Ltd., Patiala, Punjab. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after NABARD’s statutory inspection and RBI’s supervisory review. RBI sustained the charge that the bank failed 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 supervisory findings and a show-cause process. The sustained charge was that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, contrary to Section 26A read with Section 56 of the BR Act.
Operating Impact
The bank must absorb the financial penalty, but the release does not impose any new operating restriction. The action signals continued supervisory scrutiny and may be followed by further regulatory action if similar compliance lapses recur.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act)
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
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