Document title: RBI imposes monetary penalty on Rajnandgaon Kendriya Sahakari Bank Maryadit
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/743
Date: 23 July 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated 16 July 2026, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Rajnandgaon Kendriya Sahakari Bank Maryadit, Rajnandgaon, Chhattisgarh. The penalty was levied for non‑compliance with RBI directions concerning the "Interest Rate on Deposits".
The statutory inspection of the bank was carried out by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on 31 March 2025. Following supervisory findings of non‑compliance and related correspondence, RBI issued a notice to the bank requiring it to show cause why a penalty should not be imposed. After reviewing the bank’s written reply, additional submissions, and oral arguments presented during a personal hearing, RBI concluded that the bank had paid additional interest to certain ineligible depositors, a breach of the RBI directions.
The penalty is imposed under the powers conferred on RBI by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not comment on the validity of any transaction or agreement between the bank and its customers. The imposition of the monetary penalty is without prejudice to any other action that RBI may initiate against the bank.
Chief General Manager Brij Raj signed the press release announcing the penalty.
This enforcement underscores RBI’s commitment to ensuring adherence to its regulatory directives on deposit interest rates and maintaining the integrity of the banking sector.