Case Brief
RBI imposed a monetary penalty of ₹1 lakh on KNS Bank, The Kurla Nagarik Sahakari Bank Ltd., Mumbai by order dated October 14, 2021. The penalty was for contravention of Section 26-A read with Section 56 of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014. RBI said the bank had not transferred balances in certain accounts unclaimed for more than ten years to the Depositor Education and Awareness Fund. After a show-cause process and consideration of the bank's submissions, RBI held that the non-compliance with its directions was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra