Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
1 Sept 2025
Case Brief
RBI, by order dated August 26, 2025, imposed a monetary penalty of ₹1 lakh on Jilla Sahakari Kendriya Bank Maryadit, Ujjain, Madhya Pradesh. The penalty was imposed after NABARD’s statutory inspection found non-compliance, and RBI concluded 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. The action was taken under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act.
Why RBI Acted
Based on supervisory findings from NABARD’s statutory inspection as of March 31, 2024, RBI issued a show-cause notice and, after considering the bank’s reply, additional submissions, and oral submissions, sustained one charge: the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. RBI imposed the penalty for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949, under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act.
Operating Impact
The bank must bear the ₹1 lakh penalty, but the release does not impose any operational restriction or withdrawal of business rights. The action primarily reflects a compliance lapse regarding unclaimed deposits and related statutory transfer obligations; RBI notes the penalty is without prejudice to any other action that may be initiated separately.
Regulatory Basis
- Section 26A read with Section 56 of the Banking Regulation Act, 1949
- Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 26 Aug 2025
- Effective From
- 26 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank