The Reserve Bank of India has imposed a monetary penalty of Rs 2.00 lakh on The Co-operative Bank of Rajkot Ltd., Rajkot in Gujarat.
The UCB was found guilty of contravention of sub-section (2) of section 26A of the Banking Regulation Act, 1949 (the Act) read with paragraph 3 of The Depositor Education and Awareness Fund Scheme, 2014 (the scheme) enclosed with Circular on ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949 – Operational Guidelines’ dated May 27, 2014.
This action is based on deficiencies 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, says RBI.
The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2021, the Inspection Report and Risk Assessment Report pertaining thereto and examination of all related correspondence revealed, inter alia, that the bank had not transferred balances lying in certain accounts remaining unclaimed for more than ten years to the Depositor Education and Awareness Fund, resulting in contravention of aforesaid provisions of the Act read with the scheme.