RBI Slams Jilla Sahakari Kendriya Bank with ₹1 Lakh Penalty Over Unclaimed Funds Compliance Breach
Reserve Bank Imposes Monetary Fine on Shajapur Branch for Statutory Non-Compliance
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on the Jilla Sahakari Kendriya Bank Maryadit, Shajapur, Madhya Pradesh. The penalty, issued under an order dated July 21, 2026, targets the bank's contravention of the Banking Regulation Act, 1949 (BR Act).This action is being taken in exercise of powers granted to the RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. The imposition highlights the regulator's commitment to enforcing compliance standards across all banking institutions.
Details of the Statutory Penalty Imposed by RBI
The fine was levied following a comprehensive review process initiated by the central bank. A statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD) referencing its financial position as of March 31, 2025.Based on supervisory findings and subsequent correspondence, RBI issued a notice advising the bank to explain why a penalty should not be imposed. After reviewing the bank’s reply, additional submissions, and oral arguments made during a personal hearing, the RBI upheld the charge.
Focus of Violation: Failure to Remit Unclaimed Amounts
The core violation that warranted the monetary fine was the failure of the Shajapur branch to transfer eligible unclaimed amounts. Specifically, the bank failed to remit these funds to the Depositor Education and Awareness Fund within the prescribed timeframe set by regulators.This action is strictly based on deficiencies in statutory compliance and does not affect the validity of any transaction or agreement between the bank and its customers. The RBI confirmed that this monetary penalty remains without prejudice to initiating any other actions against the bank if necessary.
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