Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
7 May 2026
Case Brief
By an order dated May 04, 2026, RBI imposed a monetary penalty of ₹5 lakh on Himachal Pradesh Gramin Bank, Mandi. The penalty was imposed after a statutory inspection by NABARD and a show-cause process, on findings that the bank had contravened Section 26A read with Section 51(1) of the Banking Regulation Act, 1949 and had not complied with RBI directions on interest rate on deposits. The sustained charges were the bank's failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and failure to pay interest on certain term deposits from the date of maturity till the date of repayment.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The bank was found to have contravened Section 26A read with Section 51(1) of the BR Act and not complied with RBI directions on 'Interest Rate on Deposits' by delaying transfer of eligible unclaimed amounts to the Depositor Education and Awareness Fund and not paying interest on certain term deposits for the period from maturity to repayment.
Operating Impact
The bank must absorb the penalty and should strengthen compliance controls around unclaimed deposits and interest payment on term deposits. The order does not itself impose an operational restriction on customers, but RBI noted that further action may still be initiated separately.
Regulatory Basis
- Section 26A read with Section 51(1) of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 4 May 2026
- Effective From
- 4 May 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank