Document title: RBI imposes monetary penalty on The Sambalpur District Co‑operative Central Bank Limited, Odisha
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/656
Date: 13 July 2026
Banking and Credit
The RBI, by an order dated 2 July 2026, imposed a monetary penalty of ₹8 lakh on The Sambalpur District Co‑operative Central Bank Limited, Odisha, 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). The penalty is exercised under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
Financial Stability and Inclusion
The RBI’s findings highlighted two specific deficiencies: (i) the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, and (ii) it did not establish a system for periodic review of the risk categorisation of its customers. These lapses pertain to depositor protection and the integrity of customer risk assessment, both critical to financial stability and inclusion.
Regulatory and Policy Measures
The action follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as of 31 March 2025. After the inspection, RBI issued a notice to the bank seeking its explanation for the alleged contraventions. The bank’s reply and oral submissions made during a personal hearing were considered before the penalty was imposed. RBI clarified that the monetary penalty is imposed without prejudice to any other action that may be initiated against the bank and does not affect the validity of any transaction or agreement entered into with its customers.