RBI imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit, Mandsaur, Madhya Pradesh

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹ 2.50 lakh on Jila Sahakari Kendriya Bank Maryadit, Mandsaur, Madhya Pradesh, for contravention of provisions under the Banking Regulation Act, 1949. The penalty was imposed after a statutory inspection by the National Bank for Agriculture and Rural Development (NABARD) revealed non-compliance with regulatory provisions. The bank had failed to transfer eligible unclaimed deposit amounts to the Depositor Education and Awareness Fund within the prescribed period.

The RBI found that this failure was due to deficiencies in regulatory compliance and that the penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of this monetary penalty is also without prejudice to any other action that may be initiated by RBI against the bank. This action aims to address regulatory shortcomings, ensuring adherence to established guidelines.

The RBI acted in accordance with its powers vested under specific sections of the Banking Regulation Act, 1949. The Reserve Bank's primary objective is to maintain stability and confidence in the financial system.