RBI imposes monetary penalty on Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra), by order dated January 05, 2023. The penalty was for contravention of the Banking Regulation Act, 1949, the Depositor Education and Awareness Fund Scheme, 2014, and NABARD directions on fraud classification, reporting and monitoring. RBI said its inspection found that the bank had not transferred eligible unclaimed deposits to the Depositor Education and Awareness Fund within the prescribed timelines and had not reported, or had delayed reporting of, frauds to NABARD. RBI stated the action was based on deficiencies in regulatory compliance and not intended to pronounce on the validity of any transaction or agreement.