The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5 lakh on Himachal Pradesh Gramin Bank for violations related to deposit regulations and non-compliance with RBI’s directions on interest rates on deposits.

The penalty, imposed through an order dated May 4, 2026, follows findings from a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) based on the bank’s financial position as of March 31, 2025.

According to RBI, the bank failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund within the stipulated timeline. It was also found to have not paid interest on certain term deposits from their maturity date until repayment.

The central bank clarified that the action pertains to regulatory and statutory compliance deficiencies and does not impact the validity of transactions or agreements entered into by the bank with its customers.