Recorded RBI impact
Fine: Rs 1.15 L
Monetary penalty · Fresh imposition
Published by RBI
10 Sept 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.15 lakh on Jilla Sahakari Bank Ltd., Azamgarh, Uttar Pradesh, after a statutory inspection and subsequent supervisory process found non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks and on KYC. RBI said the bank failed to report credit information of its borrowers to all Credit Information Companies and failed to upload customer KYC records to CKYCR within the prescribed timeline. The penalty was imposed under the relevant provisions of the Credit Information Companies (Regulation) Act, 2005 and the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after supervisory findings showed the bank had not complied with directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’. Specifically, the bank failed to report credit information of its borrowers to all Credit Information Companies and failed to upload KYC records of customers to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the monetary penalty and address the compliance gaps identified by RBI. Going forward, it is expected to ensure timely CIC reporting for borrowers and prompt uploading of KYC records to CKYCR, with potential for further regulatory action if deficiencies persist.
Regulatory Basis
- Section 25(1)(iii) read with Section 23(4) of Credit Information Companies (Regulation) Act, 2005
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.15 L
- Order Date
- 9 Sept 2026
- Effective From
- 9 Sept 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank