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

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

July 3, 2026

The RBI has levied a penalty of ₹1.05 lakh on the The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank for regulatory non-compliance. This reinforces the regulatory framework within which these banks operate.

Monetary Penalty on The N.E. & E.C. Railway Employees’ Bank

In an order dated June 30, 2026, the Reserve Bank of India (RBI) imposed a penalty of ₹1.05 lakh on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd. located in Gorakhpur. This penalty was for contravening provisions of Section 26A in conjunction with Section 56 of the Banking Regulation Act, 1949.

The failure to comply with RBI’s directives regarding membership of Credit Information Companies significantly influenced the decision to impose this fine. Such enforcement actions by the RBI serve to maintain the integrity of the banking system and ensure that cooperative banks adhere to established regulatory frameworks.

This penalty emphasizes to banking practitioners the importance of compliance with regulatory requirements. Non-compliance not only results in financial penalties but can also affect the bank's reputation and operational capabilities.

Citations

  • RBI Penalty Order (2026)
Source:Reserve Bank of India
Practice Areas:bankingregulatory

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