RBI imposes monetary penalty on The Akola Janata Commercial Co-operative Bank Limited, Akola

Case Brief

RBI, by order dated December 31, 2024, imposed a monetary penalty of Rs 15.40 lakh on The Akola Janata Commercial Co-operative Bank Limited, Akola. The penalty followed a statutory inspection and subsequent show-cause proceedings, in which RBI found contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on maintenance of deposit accounts for primary (urban) co-operative banks. RBI sustained charges that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and failed to settle claims and release payments to survivor(s)/nominee(s) of certain deceased depositors within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.