Monetary Penalty on The Sambalpur District Co-operative Central Bank Limited
RBI press-release 2026-2027/656 · 13 Jul 2026
Official title
RBI imposes monetary penalty on The Sambalpur District Co-operative Central Bank Limited, Odisha
RBI press-release 2026-2027/656 · 13 Jul 2026
Official title
RBI imposes monetary penalty on The Sambalpur District Co-operative Central Bank Limited, Odisha
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹8 lakh on The Sambalpur District Co-operative Central Bank Limited, Odisha. The bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period. The bank also failed to implement a system for the periodic review of customer risk categorisation. These actions violate Section 26A read with Section 56 of the Banking Regulation Act, 1949, and RBI directions on Know Your Customer. The penalty follows a statutory inspection by the National Bank for Agriculture and Rural Development regarding the bank's financial position as of March 31, 2025.
Key dates
Who is affected
Thresholds
If you do not comply
July 13, 2026
RBI imposes monetary penalty on The Sambalpur District Co-operative Central Bank Limited, Odisha
The Reserve Bank of India (RBI) has, by an order dated July 02, 2026, imposed a monetary penalty of ₹8 lakh (Rupees Eight Lakh only) on The Sambalpur District Co- operative Central Bank Limited, Odisha (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 ‘Know Your Customer (KYC)’. 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.
The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD) 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 oral submissions made during the personal hearing, 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. put in place a system of periodic review of risk categorisation of customers.
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: 2026-2027/656 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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