RBI imposes monetary penalty on Janata Sahakari Bank Ltd., Gondia, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty on Janata Sahakari Bank Ltd., Gondia, Maharashtra by order dated March 13, 2025. Following a statutory inspection with reference to the bank's financial position as on March 31, 2024, RBI found that the bank had contravened Section 26A read with Section 56 of the Banking Regulation Act, 1949. The sustained violation was the bank's failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and that the action does not pronounce on the validity of any transaction or agreement with customers.