**Summary:**
On August 26, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹1 lakh on Jila Sahakari Kendriya Bank Maryadit, Narmadapuram, Madhya Pradesh, for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949. The penalty was levied under the powers conferred by Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the same Act. The action was based on the bank's failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the stipulated timeframe, as revealed during a statutory inspection by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank's financial position as of March 31, 2024. The RBI issued a notice to the bank, and after considering the bank's response and submissions, determined that the imposition of a monetary penalty was warranted. 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 this penalty does not preclude the RBI from initiating further action against the bank. Contact information for the RBI's Department of Communication is available at helpdocrbi.org.in or by phone at 022-2266 0502. The press release, reference number 2025-2026/1016, was issued on September 01, 2025, by Chief General Manager, Puneet Pancholy. Additional information can be found on the RBI website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Jila Sahakari Kendriya Bank Maryadit, Narmadapuram, Madhya Pradesh: A cooperative bank in Narmadapuram, Madhya Pradesh, which was penalized by the RBI.
Madhya Pradesh: A state in India where the Jila Sahakari Kendriya Bank Maryadit is located.
Banking Regulation Act, 1949: An act of the Parliament of India to regulate banking companies in India.
National Bank for Agriculture and Rural Development: An apex development finance institution in India, also referred to as NABARD.
Depositor Education and Awareness Fund: A fund maintained by the Reserve Bank of India to promote awareness of depositors' rights.
Section 26A: Section of the Banking Regulation Act, 1949.
Section 56: Section of the Banking Regulation Act, 1949.
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
September 01, 2025
RBI imposes monetary penalty on Jila Sahakari Kendriya Bank Maryadit,
Narmadapuram, Madhya Pradesh
The Reserve Bank of India (RBl) has imposed, by an order dated August 26,
2025, a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Jila Sahakari
Kendriya Bank Maryadit, Narmadapuram, Madhya Pradesh, (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) and Section 46(4)(i) read
with Section 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: 2025-2026/1016 Chief General Manager