RBI press-release 2026-2027/593 · 02 Jul 2026
Official title
RBI imposes monetary penalty on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd, Gorakhpur
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹1.05 lakh on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd, Gorakhpur. The bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period. The bank also failed to obtain membership of two Credit Information Companies and submit borrower credit information to all four Credit Information Companies. This action follows a statutory inspection of the bank financial position as of March 31, 2025. The penalty results from non-compliance with the Banking Regulation Act, 1949 and RBI directions regarding Credit Information Companies membership.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
July 2, 2026
RBI imposes monetary penalty on The N.E. & E.C. Railway Employees’ Multi- State Primary Co-operative Bank Ltd, Gorakhpur
The Reserve Bank of India (RBI) has, by an order dated June 30, 2026, imposed a monetary penalty of ₹1.05 lakh (Rupees One Lakh Five Thousand only) on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd, Gorakhpur (the bank) for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 read with Section 23 of Credit Information Companies (Regulation) Act, 2005.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of contravention of statutory provisions / non-compliance with RBI directions 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 and directions. After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty: The bank had failed to:
i. transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period; and ii. obtain membership of two Credit Information Companies (CICs) and submit credit information of its borrowers to all the four CICs.
This action is based on deficiencies in statutory and regulatory 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.
(Brij Raj)
Press Release: 2026-2027/593 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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