Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
1 Sept 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Jilla Sahakari Kendriya Bank Maryadit, Damoh, Madhya Pradesh, by order dated August 26, 2025. The action was taken after a statutory inspection conducted by NABARD with reference to the bank's financial position as on March 31, 2024, and followed supervisory findings, a show-cause notice, and consideration of the bank's reply and submissions. RBI sustained the charge that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time, and imposed the penalty under the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949 after supervisory findings 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, indicating non-compliance with statutory provisions.
Operating Impact
The bank must absorb the penalty and address the underlying statutory compliance gap. The action does not itself impose an operating restriction, but it signals RBI scrutiny over compliance with depositor-fund transfer requirements and could be followed by further supervisory action if lapses persist.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c)
- Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 26 Aug 2025
- Effective From
- 26 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank