The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on Jila Sahakari Bank Limited, Mau, Uttar Pradesh, for non-compliance with certain directions related to Know Your Customer (KYC) norms. The penalty was imposed through an order dated December 31, 2025, in exercise of powers under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The action followed a statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2024.
Based on supervisory findings, RBI found that the bank had failed to put in place a system for periodic review of risk categorisation of accounts at least once every six months. The bank was also found to have failed to carry out periodic updation of KYC for its customers.
RBI clarified that the penalty is based on regulatory compliance deficiencies and does not relate to the validity of any transaction or agreement entered into by the bank.
