RBI imposes monetary penalty on The Sambalpur District Co-operative Central Bank Limited, Odisha

Case Brief

RBI, by an order dated July 02, 2026, imposed a monetary penalty of ₹8 lakh on The Sambalpur District Co-operative Central Bank Limited, Odisha. The penalty was imposed for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949 and for non-compliance with RBI directions on Know Your Customer (KYC). RBI stated that the bank had failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed period and had not put in place a system for periodic review of customer risk categorisation. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act following supervisory findings and a show-cause process.