The Reserve Bank of India (RBI) has imposed a Rs 1.05 lakh monetary penalty on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Ltd., Gorakhpur for regulatory violations related to unclaimed deposits and credit information reporting.

The central bank found that the bank failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund within the stipulated timeframe and did not obtain membership of the required Credit Information Companies (CICs) or submit borrowers' credit data to all four CICs. RBI clarified that the penalty relates to regulatory compliance deficiencies and does not affect the validity of customer transactions.