Indore (Madhya Pradesh): The Reserve Bank of India (RBl) has, by an order dated January 8, imposed a penalty of Rs 75,000 on Jila Sahakari Kendriya Bank Maryadit in Madhya Pradesh's Shahdol for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) read with the 'Depositor Education and Awareness Fund Scheme, 2014' (the Scheme).
The RBI in an official statement issued on Monday said that the action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2022, and examination of the Inspection Report and all correspondence related thereto revealed, inter alia, that the bank had not transferred the eligible amount to the Depositor Education and Awareness Fund, the RBI said in its statement.
Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said statutory provisions and directions, as stated therein, RBI said further.
After considering the bank's reply to the notice and oral submissions made by it during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid statutory provisions and directions related to the scheme was substantiated and warranted imposition of monetary penalty on the bank, it added.
