Case Brief
RBI imposed a monetary penalty of ₹3.00 lakh on The Sahyadri Sahakari Bank Limited, Mumbai by order dated October 13, 2021. The penalty was for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949, the Scheme framed thereunder, and RBI directions contained in the Master Circular on Frauds - Classification and Reporting. RBI said its inspection revealed that the bank had not transferred amounts unclaimed for more than ten years to the Depositor Education and Awareness Fund and had reported frauds to RBI with an inordinate delay. After show-cause proceedings and oral submissions, RBI concluded that the charges were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 3.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra