RBI imposes monetary penalty on The State Transport Co-operative Bank Limited, Mumbai (Maharashtra)

Case Brief

By an order dated August 23, 2023, RBI imposed a monetary penalty of Rs 2 lakh on The State Transport Co-operative Bank Ltd., Mumbai, Maharashtra. The penalty was for non-compliance with RBI directions on the Depositor Education and Awareness Fund Scheme, 2014. RBI’s statutory inspection found that the bank failed to transfer amounts eligible for transfer to the Depositor Education and Awareness Fund. After considering the bank’s reply and oral submissions, RBI concluded that the contravention was established and warranted the penalty. RBI also clarified that the action was based on regulatory compliance deficiencies and did not pronounce on the validity of any transaction or agreement with customers.