Document title: RBI imposes monetary penalty on The Monghyr‑Jamui Central Co‑operative Bank Limited, Bihar
Issuing authority: Reserve Bank of India (RBI)
Reference: Press Release 2026‑2027/1287
Date: 08 October 2026
Banking and Credit
The RBI, by an order dated 25 September 2026, imposed a monetary penalty of ₹5 lakh on The Monghyr‑Jamui Central Co‑operative Bank Limited, Bihar, for failure to upload customer Know Your Customer (KYC) records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. The penalty follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) covering the bank’s financial position as of 31 March 2026. After issuing a show‑cause notice, considering the bank’s reply, additional submissions and oral arguments at a personal hearing, the RBI sustained the charge of non‑compliance and imposed the fine.
Regulatory and Policy Measures
The action is taken under the powers conferred on the RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI clarified that the penalty addresses a deficiency in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the bank. The imposition of the monetary penalty is without prejudice to any further action that the RBI may initiate against the bank.
The enforcement underscores the RBI’s continued focus on strict adherence to KYC norms and the integrity of the CKYCR system, reinforcing regulatory expectations for cooperative banks.