Document title: RBI imposes monetary penalty on Jalna District Central Co‑operative Bank Ltd.
Issuing authority: Reserve Bank of India (RBI)
Reference number: Not applicable
Date: 27 August 2026
Banking and Credit
The RBI, by an order dated 25 August 2026, imposed a monetary penalty of ₹50,000 on Jalna District Central Co‑operative Bank Ltd., Maharashtra, for failure to comply with RBI directions on Membership of Credit Information Companies (CICs) by Co‑operative Banks and Know Your Customer (KYC) requirements. The bank did not report credit information of its borrowers to all CICs and did not carry out a periodic review of risk categorisation of accounts at least once every six months. The statutory inspection of the bank was conducted by NABARD, referencing the bank’s financial position as on 31 March 2025. Following supervisory findings, RBI issued a notice to the bank to show cause why the penalty should not be imposed. After considering the bank’s reply, additional submissions, and oral arguments during a personal hearing, RBI sustained the charges and imposed the penalty.
Regulatory and Policy Measures
The penalty is imposed under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not comment on the validity of any transaction or agreement between the bank and its customers. The monetary penalty is imposed without prejudice to any other action that may be initiated by RBI against the bank.
The RBI’s enforcement underscores its commitment to ensuring that co‑operative banks adhere to credit information reporting and KYC norms, thereby strengthening the overall stability and transparency of the banking sector.