RBI has imposed monetary penalty on a bank in Maharashtra. Before taking action, the central bank had also issued a show cause notice.
RBI Action: The Reserve Bank of India takes strict action against banks in case of violation of rules. RBI has imposed a monetary penalty on Jai Bhavani Sahakari Bank Limited, Pune, Maharashtra. This bank is accused of non-compliance with the guidelines related to KYC and accounts. Therefore, the central bank has imposed a fine of Rs 1.5 lakh.
RBI has taken this action under sections 47A (1)(c), 46(4) (i) and 56 of the Banking Regulation Act 1949. Let us tell you that the statutory inspection was done by the Reserve Bank with respect to the financial position of the bank till March 31, 2023. During this, the matter of non-compliance of the instructions came to the fore. After this, RBI had issued a notice to the bank and asked “why they should not be fined for failing to comply with the said instructions”. After considering the bank’s reply to the notice, the central bank decided to uphold the charges and imposed a monetary penalty.
The bank violated these rules (RBI Monetary Penalty)
The bank failed to transfer eligible and undeclared deposits to the Depositor Education and Awareness Fund within the stipulated period. It was also unable to conduct a periodic review of the risk classification of accounts. The bank also failed to conduct an annual review of its dormant accounts.
Will the customers be affected?
This action of RBI will not affect the transactions or agreements between the customers and the bank. This has been confirmed by the RBI itself. Apart from this, it will not have any effect on any other action initiated by the RBI against the bank.
