What changed
...did not obtain membership of two CICs and submit credit information of its borrowers to all the four CICs.
What it means for you
This penalty underscores RBI's strict enforcement of depositor protection norms and credit information sharing requirements for co-operative banks. Banks must ensure timely transfer of unclaimed deposits to the designated fund and maintain CIC membership to avoid regulatory action. Non-compliance can lead to financial penalties and reputational risk.
What you must do
- Review and update processes for timely transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund.
- Ensure your bank has obtained membership of at least two Credit Information Companies and submits credit information to all four CICs.
- Conduct internal audits to verify compliance with Section 26A of the BR Act and RBI directions on CIC membership.
Who it affects
Multi-State Primary Co-operative Banks, All co-operative banks regulated by RBI, Banks handling unclaimed deposits
What specific violations led to this penalty?
The bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period and did not obtain membership of two Credit Information Companies and submit credit information to all four CICs.