Document title: RBI imposes monetary penalty on Sultanpur Jilla Sahkari Bank Ltd., Uttar Pradesh
Issuing authority: Reserve Bank of India
Reference: Order dated June 19, 2026
Date: June 22, 2026
Banking and Credit
The Reserve Bank of India, after a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on 31 March 2025, issued a notice to Sultanpur Jilla Sahkari Bank Ltd. asking it to show cause why a penalty should not be imposed for non‑compliance with RBI directions. The bank’s reply, additional submissions and oral arguments were considered before the RBI concluded that several statutory provisions had been contravened.
Regulatory and Policy Measures
Pursuant to the powers conferred under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005, the RBI imposed a monetary penalty of ₹3 lakh on the bank. The penalty stems from the bank’s failure to (i) submit credit information of its borrowers to all four Credit Information Companies, (ii) establish a system for periodic review of risk categorisation of accounts, (iii) implement robust software for effective identification and reporting of suspicious transactions, and (iv) transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. The RBI clarified that the penalty does not prejudice any other action that may be initiated against the bank.
The RBI’s action underscores its commitment to enforce compliance with statutory and regulatory requirements, particularly concerning credit information sharing, risk management, anti‑money‑laundering safeguards and depositor protection. This enforcement serves as a reminder to cooperative banks of the need to adhere strictly to RBI directives and the provisions of the Banking Regulation Act.