RBI imposes monetary penalty on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd, Gorakhpur

Case Brief

By an order dated June 30, 2026, RBI imposed a monetary penalty of ₹1.05 lakh on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd, Gorakhpur. The penalty was imposed after a statutory inspection and subsequent show-cause process, which found sustained contraventions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks. RBI recorded that the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time and failed to obtain membership of two CICs and submit borrower credit information to all four CICs. The penalty was imposed under the BR Act and the CIC Regulation Act, without prejudice to any further action RBI may initiate.