Document Title: RBI imposes monetary penalty on Jilla Sahakari Bank Ltd.
Issuing Authority: Reserve Bank of India
Reference: Press Release 2026-2027/1090
Date: 10 September 2026
Banking and Credit
The RBI, acting under its supervisory mandate, conducted a statutory inspection of Jilla Sahakari Bank Ltd., Azamgarh, with reference to the bank’s financial position as of 31 March 2025. The inspection, carried out by NABARD, identified non‑compliance with RBI directions concerning the bank’s membership of Credit Information Companies (CICs) and the Know Your Customer (KYC) framework. A notice was issued to the bank requiring it to show cause why a penalty should not be imposed. After reviewing the bank’s written reply, additional submissions, and oral arguments presented at a personal hearing, the RBI sustained the charges.
Regulatory and Policy Measures
The RBI imposed a monetary penalty of ₹1.15 lakh (Rupees One Lakh and Fifteen Thousand only) on the bank under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was imposed for (i) failure to report credit information of borrowers to all Credit Information Companies, and (ii) failure to upload customer KYC records onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. The RBI clarified that the penalty does not adjudicate the validity of any transaction or agreement with customers and is without prejudice to any further regulatory action that may be taken against the bank.
The action underscores the RBI’s emphasis on strict adherence to credit information sharing and KYC norms by cooperative banks.