Document title: RBI imposes monetary penalty on Jilla Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/884
Date: August 13, 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated August 11, 2026, imposed a monetary penalty of ₹2.50 lakh (Rupees Two Lakh Fifty Thousand only) on Jilla Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh. The penalty is for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and is exercised under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the same Act.
A statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2025. Following supervisory findings of statutory non‑compliance, RBI issued a notice to the bank asking it to show cause why a penalty should not be imposed. After considering the bank’s written reply, additional submissions, and oral arguments made during a personal hearing, RBI sustained the charge that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period.
The RBI clarified that the monetary penalty is imposed solely for deficiencies in statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The penalty is imposed without prejudice to any other action that may be initiated by RBI against the bank.
The press release is signed by the Chief General Manager, Brij Raj.
The RBI’s action underscores its continued emphasis on strict adherence to statutory obligations under the Banking Regulation Act, particularly concerning the timely transfer of unclaimed deposits to the Depositor Education and Awareness Fund.