The Reserve Bank of India (RBI) has imposed a Rs 50,000 monetary penalty on Jalna District Central Co-operative Bank Ltd., Maharashtra for non-compliance with regulatory directions on Credit Information Companies (CICs) and Know Your Customer (KYC).
The penalty was imposed through an order dated August 25, 2026, following a statutory inspection conducted by NABARD with reference to the bank’s financial position as of March 31, 2025.
RBI found that the bank had failed to report borrowers’ credit information to all Credit Information Companies as required. The bank also failed to conduct periodic reviews of the risk categorisation of accounts at least once every six months.
The central bank said the penalty followed supervisory findings and consideration of the bank’s reply, additional submissions and oral representations made during a personal hearing.
RBI clarified that the action relates to regulatory compliance deficiencies and does not question the validity of transactions or agreements entered into by the bank with its customers.
The penalty was imposed under the relevant provisions of the Credit Information Companies (Regulation) Act, 2005 and Banking Regulation Act, 1949.
