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

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Jila Sahakari Kendriya Bank Maryadit, Shahdol (M.P.) by order dated April 06, 2022. The penalty was imposed for contravention of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and RBI directions on Know Your Customer (KYC), based on inspection findings that the bank had not transferred eligible deposits unclaimed for more than ten years to the Fund and had no system to monitor suspicious transactions. RBI stated the penalty was for deficiencies in regulatory compliance and was not intended to pronounce on the validity of any transaction or agreement with customers.