**Summary:**
On August 26, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only) on Jilla Sahakari Kendriya Bank Maryadit, Damoh, 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 on RBI by Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the same Act. The action follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) referencing 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 prescribed time. The RBI's action is based on deficiencies in statutory compliance and does not reflect on the validity of any transactions or agreements between the bank and its customers. This penalty is without prejudice to any other action that may be initiated by the RBI against the bank. Contact information for the Reserve Bank of India's Department of Communication is available at helpdocrbi.org.in, phone number 022-2266 0502. The press release number is 2025-2026/1017.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Jilla Sahakari Kendriya Bank Maryadit, Damoh, Madhya Pradesh: A cooperative bank located in Damoh, Madhya Pradesh, which was penalized by the RBI.
Madhya Pradesh: A state in central India where the penalized bank is located.
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 (NABARD).
Depositor Education and Awareness Fund: A fund maintained by the Reserve Bank of India to promote awareness of depositors' rights.
Mumbai: The city in Maharashtra where the Central Office of the Reserve Bank of India is located.
Puneet Pancholy: Chief General Manager.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
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 Jilla Sahakari Kendriya Bank Maryadit,
Damoh, Madhya Pradesh
The Reserve Bank of India (RBl) has imposed, by an order dated August 26,
2025, a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on Jilla
Sahakari Kendriya Bank Maryadit, Damoh, 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: 2025-2026/1017 Chief General Manager