Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Feb 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3 lakh on Jilla Sahkari Bank Limited, Kanpur, Uttar Pradesh, for non-compliance with certain RBI directions on Know Your Customer (KYC). The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act after inspection and supervisory findings showed that the bank had failed to maintain a system for periodic review of the risk categorisation of accounts at least once every six months.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act after supervisory findings showed non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to put in place a system for periodic review of the risk categorisation of accounts with a periodicity of at least once in six months.
Operating Impact
The bank must absorb the penalty and address the compliance gap identified by RBI, particularly by ensuring a periodic review process for account risk categorisation. The release does not indicate any operational restriction on customers, but RBI may initiate further action if warranted.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 30 Jan 2026
- Effective From
- 30 Jan 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank