RBI fines Sambalpur District Co-operative Central Bank ₹8 lakh for KYC, deposit lapses
The central bank penalised the Odisha-based lender for failing to transfer unclaimed deposits on time and not reviewing customer risk categorisation periodically.
What changed
- Bank failed to transfer eligible unclaimed amounts to Depositor Education and Awareness Fund within prescribed period
- Bank did not put in place a system of periodic review of risk categorisation of customers
The read
The RBI imposed a ₹8 lakh penalty on The Sambalpur District Co-operative Central Bank Limited for breaching statutory provisions and its own KYC directions. The bank failed to transfer unclaimed deposits to the Depositor Education and Awareness Fund on time and neglected periodic risk reviews of customers, both basic regulatory obligations. The fine, based on NABARD's inspection as of March 2025, signals the RBI's zero tolerance for compliance slippages in co-operative banks. The action is specific to these deficiencies and does not invalidate customer transactions.
Key numbers
- penalty: ₹8 lakh
- order date: July 02, 2026
- inspection date: March 31, 2025
Primary source: rbi.org.in