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The Odisha State Co-operative Bank Ltd

Co-operative bankOdisha

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 4.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

30 Jan 2025

Case Brief

By order dated January 28, 2025, RBI imposed a monetary penalty of ₹4.00 lakh on The Odisha State Co-operative Bank Ltd. The penalty followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2023, and subsequent supervisory proceedings. RBI found that the bank had contravened provisions of Section 9 and Section 26A of the Banking Regulation Act, 1949 by failing to dispose of certain non-banking assets within the prescribed period and by failing to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act.

Why RBI Acted

Reporting & disclosureCustomer protection

RBI imposed a monetary penalty after supervisory findings and a show-cause process established contraventions of the Banking Regulation Act, 1949. The bank was found to have failed to dispose of certain non-banking assets within the prescribed time and failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, in violation of Section 9 and Section 26A of the BR Act. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act.

Operating Impact

The bank must absorb the monetary penalty and continue ensuring compliance with the Banking Regulation Act going forward. The order does not itself impose an operational restriction, but it signals supervisory scrutiny and leaves RBI free to initiate any further action if warranted. Depositors are indirectly affected through the bank’s obligation to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund on time.

Regulatory Basis

  • Section 9 of the Banking Regulation Act, 1949
  • Section 26A of the Banking Regulation Act, 1949
  • Section 47A(1)(c) read with Section 46(4)(i) and 56 of BR Act

Action Facts

Primary Impact
Fine: Rs 4.00 L
Order Date
28 Jan 2025
Effective From
28 Jan 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank