Document title: RBI Imposes Monetary Penalty on The N.E. & E.C. Railway Employees' Multi-State Primary Co-operative Bank Ltd
Issuing authority: Reserve Bank of India
Reference number: N/A
Date: 2 July 2026 (order dated 30 June 2026)
Regulatory Action and Penalty
The Reserve Bank of India, by an order dated 30 June 2026, imposed a monetary penalty of ₹1.05 lakh (Rupees One Lakh Five Thousand only) on The N.E. & E.C. Railway Employees' Multi-State Primary Co-operative Bank Ltd, Gorakhpur. The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.
The RBI’s statutory inspection, referencing the bank’s financial position as of 31 March 2025, identified contraventions of statutory provisions and non‑compliance with RBI directions on membership of Credit Information Companies (CICs) by co‑operative banks. After issuing a show‑cause notice and considering the bank’s reply and additional submissions, the RBI sustained the following charges:
- Failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period.
- Failure to obtain membership of two Credit Information Companies and to submit borrower credit information to all four CICs.
The RBI clarified that the penalty addresses deficiencies in statutory and regulatory compliance and does not prejudice any further action that may be initiated against the bank.
In summary, the RBI has exercised its enforcement powers to penalise the bank for specific compliance lapses, reinforcing regulatory expectations for co‑operative banks regarding unclaimed deposits and credit information reporting.