RBI Slaps Rs5 Lakh Penalty on Ropar Central Cooperative Bank for Not Remitting Unclaimed Amounts to DEA Fund
Moneylife Digital Team 12 December 2024
Reserve Bank of India (RBI) has imposed a fine of Rs5 lakh on Punjab-based Ropar Central Cooperative Bank Ltd for non-compliance with directions under the provisions of Section 26A of the Banking Regulation Act (BR Act). 
 
The statutory inspection of the lender conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as of 31 March 2023 revealed that Ropar Central Cooperative Bank had failed to transfer eligible unclaimed amounts to RBI's depositor education and awareness fund (DEA Fund) within the prescribed time.
 
A notice was issued to the Bank advising it to show cause why a penalty should not be imposed for non-compliance with the directions.
 
"After considering the reply and oral submissions of the bank during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," the central bank says.
 
RBI says the penalty is based on deficiencies in regulatory compliance and is not intended to be pronounced on the validity of any transaction or agreement they entered into with their customer.
 
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