RBI imposes monetary penalty on The Odisha State Co-operative Bank Ltd

Case Brief

By order dated January 28, 2025, RBI imposed a monetary penalty of ₹4.00 lakh on The Odisha State Co-operative Bank Ltd. The penalty followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2023, and subsequent supervisory proceedings. RBI found that the bank had contravened provisions of Section 9 and Section 26A of the Banking Regulation Act, 1949 by failing to dispose of certain non-banking assets within the prescribed period and by failing to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act.