The Uttarakhand Grameen Bank, Dehradun

Following a statutory inspection conducted by NABARD with reference to the bank's financial position as on March 31, 2023, RBI issued a show-cause notice based on supervisory findings of non-compliance. After considering the bank's written reply and oral submissions, RBI concluded that The Uttarakhand Grameen Bank had transferred the eligible unclaimed amount to the Depositor Education and Awareness Fund with delay, amounting to contravention of section 26A(2) read with section 51 of the Banking Regulation Act, 1949. RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 51 of the BR Act.

The bank must absorb the penalty and address the compliance lapse in handling unclaimed depositor funds. The action does not impose an operating restriction, but RBI may initiate further action if warranted. Depositors are indirectly affected only to the extent that the bank must improve timeliness in statutory fund transfers.