RBI imposes monetary penalty on The Uttarakhand Grameen Bank, Dehradun

Case Brief

RBI imposed a monetary penalty of ₹5.00 lakh on The Uttarakhand Grameen Bank, Dehradun by order dated March 27, 2024. The penalty was based on the bank's delayed transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund, which RBI treated as a contravention of section 26A(2) read with section 51 of the Banking Regulation Act, 1949. The action followed a statutory inspection by NABARD and a show-cause process, including the bank's reply and oral submissions. RBI stated that the penalty is based on deficiencies in regulatory compliance and does not pronounce on the validity of any transaction or agreement with customers.