Reserve Bank of India imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Panna (M.P.)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Panna (M.P.) by order dated February 24, 2022. RBI said the bank had contravened provisions of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and RBI directions on Know Your Customer. The inspection report found that the bank had not transferred eligible amounts lying in inoperative accounts for more than ten years to the Depositor Education and Awareness Fund, and had no system to generate alerts and monitor suspicious transactions. RBI concluded the charges were substantiated and that monetary penalty was warranted.