RBl has imposed a monetary penalty of Rs 25,000 on Jila Sahakari Kendriya Bank Maryadit, Satna (M.P.). The bank was faulted for contravention of the provisions of the Banking Regulation Act, 1949 (the Act) and the Depositor Education and Awareness Fund Scheme, 2014 (the Scheme).
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The inspection report of the bank based on its financial position as on March 31, 2020, revealed, inter alia, that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund in contravention of/ non-compliance with the provisions under Section 26-A of the Act and the Scheme. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the bank’s replies and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-compliance with the provisions of the Act and RBI directions was substantiated and warranted imposition of monetary penalty.