The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 lakh on Jilla Sahakari Kendriya Bank Maryadit for violating provisions of the Banking Regulation Act, 1949, and non-compliance with RBI’s Know Your Customer (KYC) directions.
According to RBI, the penalty order dated May 12, 2026, was issued after supervisory findings emerged during a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2025.
The central bank said the cooperative bank failed to transfer eligible unclaimed deposits to the Depositor Education and Awareness Fund (DEAF) within the stipulated timeframe. RBI also found that the bank did not conduct periodic reviews of risk categorisation of customer accounts at least once every six months, as required under KYC norms.
RBI clarified that the action relates only to regulatory compliance deficiencies and does not affect the validity of customer transactions or agreements.