The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5 lakh on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar, for non-compliance with its directions on Know Your Customer (KYC).
The penalty was imposed through an order dated September 25, 2026, under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The bank’s statutory inspection was conducted by the National Bank for Agriculture and Rural Development (NABARD), with reference to its financial position as on March 31, 2026. Following supervisory findings, RBI issued a show-cause notice to the bank and considered its written response, additional submissions and oral representations during a personal hearing.
RBI found that the bank had failed to upload customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, sustaining the charge and warranting the monetary penalty.
The 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 is also without prejudice to any further regulatory action that may be initiated against the bank.
