RBI fines co-op bank ₹1.05 lakh for deposit, credit reporting lapses
Penalty for failure to transfer unclaimed deposits and non-compliance with credit information company membership rules.
What changed
- Failed to transfer eligible unclaimed amounts to Depositor Education and Awareness Fund within prescribed period
- Failed to obtain membership of two Credit Information Companies and submit credit information to all four CICs
The read
RBI imposed a ₹1.05 lakh penalty on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank for two distinct compliance failures. The bank did not transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund on time, violating Section 26A of the Banking Regulation Act. Separately, it failed to secure membership of two Credit Information Companies and submit borrower data to all four CICs, breaching RBI’s credit reporting directions. While the fine is modest, the action shows RBI’s focus on depositor protection and credit discipline in cooperative banks. The penalty, based on an inspection as of March 31, 2025, is purely for regulatory non-compliance and does not void any customer transactions.
Key numbers
- Penalty: ₹1.05 lakh
- Order date: June 30, 2026
- Inspection reference: March 31, 2025
Primary source: rbi.org.in