RBI imposes monetary penalty on Standard Urban Co-operative Bank Limited Aurangabad (MH)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Standard Urban Co-operative Bank Ltd., Aurangabad, by order dated March 19, 2024. The penalty followed a statutory inspection and show-cause process in which RBI found that the bank had not transferred the eligible amount to the Depositor Education and Awareness Fund within the prescribed time, amounting to contravention of section 26A read with section 56 of the Banking Regulation Act, 1949. RBI stated that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.