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The Sambalpur District Co-operative Central Bank Limited, Odisha

Co-operative bankSambalpur, Odisha

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

Recorded RBI impact

Fine: Rs 8.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

13 Jul 2026

Case Brief

RBI, by an order dated July 02, 2026, imposed a monetary penalty of ₹8 lakh on The Sambalpur District Co-operative Central Bank Limited, Odisha. The penalty was imposed for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and for non-compliance with RBI directions on Know Your Customer (KYC). RBI stated that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period and had not put in place a system for periodic review of customer risk categorisation. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act following supervisory findings and a show-cause process.

Why RBI Acted

KYC / AMLReporting & disclosure

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 inspection findings showed contraventions of Section 26A read with Section 56 of the BR Act and non-compliance with RBI's KYC directions. The bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and had not put in place a system for periodic review of the risk categorisation of customers.

Operating Impact

The bank must absorb the ₹8 lakh penalty and address the compliance gaps identified by RBI. Going forward, it needs to ensure timely transfer of eligible unclaimed amounts to the DEAF and implement periodic review of customer risk categorisation under KYC controls; RBI also noted that the penalty does not preclude other supervisory or enforcement action.

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 Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 8.00 L
Order Date
2 Jul 2026
Effective From
2 Jul 2026
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank