The Reserve Bank of India has imposed an RBI monetary penalty of ₹1 lakh on Jilla Sahakari Kendriya Bank Maryadit, Shajapur, Madhya Pradesh. The central bank issued this order on July 21, 2026. The bank failed to comply with key provisions of the Banking Regulation Act, 1949.
Key Details of the RBI Monetary Penalty
RBI exercised its powers under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act. The specific violation involved Section 26A, which governs unclaimed deposits. As a result, the bank faces a fine of ₹1 lakh for this compliance failure.
NABARD conducted a statutory inspection of the bank based on its financial position as on March 31, 2025. The inspection revealed supervisory findings of statutory violations. RBI subsequently issued a show-cause notice to the bank.
The bank submitted its written reply and additional submissions. It also presented oral submissions during a personal hearing. However, RBI found that the core charge against the bank was sustained.
What This Means for Customers and Compliance
The sustained charge is serious. The bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund (DEAF) within the prescribed time period. Therefore, depositors with dormant accounts were potentially affected by this lapse.
The DEAF scheme exists to protect the interests of depositors whose funds remain unclaimed for ten years or more. Banks must transfer such funds to RBI within the stipulated deadline. Meanwhile, depositors can still reclaim their funds from their bank at any time.
RBI has clarified that this penalty addresses only statutory compliance deficiencies. It does not question the validity of any transaction or agreement the bank has entered into with its customers. Additionally, RBI reserves the right to initiate further action against the bank if required.
This penalty serves as a reminder for cooperative banks across India to stay current with DEAF transfer obligations. Regulatory compliance protects both depositors and the broader banking ecosystem. For example, timely transfers to DEAF ensure unclaimed funds are managed transparently and accountably.
Source: RBI Press Releases
