Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
11 Aug 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on District Central Co-operative Bank Ltd., Bilaspur, Chhattisgarh by order dated August 07, 2025. The penalty was imposed after a NABARD statutory inspection, supervisory findings, a show-cause notice, and consideration of the bank's written and oral submissions. RBI held that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, constituting contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after a statutory inspection by NABARD and a show-cause process. The sustained charge was that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, contrary to Section 26A read with Section 56 of the BR Act.
Operating Impact
The bank must absorb the penalty and ensure future compliance with the requirement to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed timeline. The action does not by itself impose an operational restriction on deposits or withdrawals, but it signals continued supervisory scrutiny by RBI.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 7 Aug 2025
- Effective From
- 7 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank