**Summary:**
On August 7, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹1,00,000 (One Lakh Rupees) on the District Central Cooperative Bank Ltd., Bilaspur, Chhattisgarh, for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949. The penalty was levied under the powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the same Act. The action followed a statutory inspection by the National Bank for Agriculture and Rural Development (NABARD) based on the bank's financial position as of March 31, 2024. The bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the mandated timeframe. The decision was made after considering the bank's response to a show-cause notice, additional written submissions, and oral submissions during a personal hearing. This action addresses deficiencies in statutory compliance and does not reflect on the validity of transactions between the bank and its customers. The imposition of the penalty does not preclude any further actions by the RBI against the bank. For further information, contact the Department of Communication, Central Office, Reserve Bank of India, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001. Email: helpdoc@rbi.org.in, Phone: 022-2266 0502. Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking sector.
District Central Cooperative Bank Ltd., Bilaspur, Chhattisgarh: A cooperative bank located in Bilaspur, Chhattisgarh, which was penalized by the Reserve Bank of India.
Banking Regulation Act, 1949: An act of the Parliament of India to regulate the banking companies in India.
National Bank for Agriculture and Rural Development: An apex development finance institution in India.
Depositor Education and Awareness Fund: A fund maintained by the Reserve Bank of India to promote awareness of depositor rights.
Mumbai: City in Maharashtra, location of the RBI central office.
Bilaspur, Chhattisgarh: City in Chhattisgarh, location of District Central Cooperative Bank Ltd.
Puneet Pancholy: Chief General Manager at Reserve Bank of India.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
August 11, 2025
RBI imposes monetary penalty on District Central Co-operative Bank Ltd.,
Bilaspur, Chhattisgarh
The Reserve Bank of India (RBl) has imposed, by an order dated August 07,
2025, a monetary penalty of ₹1 lakh (Rupees One Lakh only) on District Central Co-
operative Bank Ltd., Bilaspur, Chhattisgarh (the bank) for contravention of provisions
of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
This penalty has been imposed in exercise of powers conferred on RBI under the
provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
The 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, 2024. Based on supervisory findings of non-compliance with
statutory provisions and related correspondence in that regard, a notice was issued
to the bank advising it to show cause as to why penalty should not be imposed on it
for its failure to comply with the said provisions. After considering the bank's reply to
the notice, additional submissions and oral submissions made during the personal
hearing, RBI found, inter alia, that the following charge against the bank was
sustained, warranting imposition of monetary penalty:
The bank had failed to transfer eligible unclaimed amounts to the Depositor
Education and Awareness Fund within the prescribed time.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to
any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Press Release: 2025-2026/881 Chief General Manager