RBI Slams ₹1 Lakh Penalty on Rajnandgaon Bank for Non-Compliance in Deposit Interest Rate Directions
The Reserve Bank of India (RBI) has imposed a significant monetary penalty on Rajnandgaon Kendriya Sahakari Bank Maryadit, located in Rajnandgaon, Chhattisgarh. The action targets deficiencies related to the bank's adherence to specific regulatory guidelines concerning 'Interest Rate on Deposits'. This regulatory penalty reflects RBI’s commitment to maintaining stringent compliance standards across all banking institutions.Penalty Imposed by RBI for Deposit Interest Mismanagement
In an order dated July 16, 2026, the RBI penalized the Rajnandgaon Kendriya Sahakari Bank Maryadit with a fine of ₹1 Lakh (Rupees One Lakh only). This monetary penalty was imposed in exercise of powers conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.The disciplinary action follows an intensive review process by the central bank. The decision reinforces RBI's authority to take corrective measures against financial institutions that fail to meet mandated compliance requirements.
Basis of Investigation and Regulatory Non-Compliance
The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD), examining its financial position as on March 31, 2025. The subsequent supervisory findings led RBI to issue a notice advising the bank to justify why a penalty should not be imposed.After considering the bank's detailed response, supplementary submissions, and oral arguments during a personal hearing, the RBI found that a specific charge against the institution was sustained. This finding relates directly to the manner in which the bank managed interest payments to certain depositors.
Implications of Monetary Penalty
The primary violation sustaining the penalty is that the bank paid additional interest amounts to certain ineligible depositors. This action stems purely from deficiencies in regulatory compliance and does not relate to the validity of any transaction or agreement made between the bank and its customers.RBI has explicitly stated that the imposition of this monetary penalty is without prejudice to initiating further actions against the bank should the need arise. The regulator continues to monitor adherence to deposit interest guidelines across the banking sector.
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