RBI Imposes Penalty on Rural Bank in Madhya Pradesh

The Reserve Bank of India (RBI) recently imposed a monetary penalty of ₹2.50 lakh on Jilla Sahakari Kendriya Bank Maryadit, located in Bhind, state of Madhya Pradesh. The penalty was levied for contravening provisions of the Banking Regulation Act, 1949, specifically Sections 26A and 56, as interpreted under Section 47A(1)(c) with Sections 46(4)(i) and 56. This decision came after a supervisory inspection by National Bank for Agriculture and Rural Development (NABARD), conducted in March 2025, based on the bank's financial position as of March 31, 2025. The inspection identified the bank’s failure to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period, as required under Section 47A(1)(c) with Sections 46(4)(i) and 56 of the BR Act. While this penalty serves as a corrective measure for statutory compliance, the RBI clarified that it does not affect any transactions or agreements entered into by the bank with its customers. The action is part of the ongoing efforts to ensure regulatory compliance across the banking sector.