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Sultanpur Jilla Sahkari Bank Ltd., Uttar Pradesh

Co-operative bankUttar Pradesh

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 3.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

22 Jun 2026

Case Brief

The RBI imposed a monetary penalty of ₹3 lakh on Sultanpur Jilla Sahkari Bank Ltd., Uttar Pradesh, following a statutory inspection conducted by NABARD for the bank’s financial position as on March 31, 2025. The penalty was imposed for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks and on Know Your Customer requirements. RBI found that the bank had failed to submit credit information of its borrowers to all four CICs, had not established a system for periodic review of risk categorisation of accounts, had not put in place robust software for identifying and reporting suspicious transactions, and had not transferred eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. RBI stated that the penalty is based on deficiencies in statutory and regulatory compliance and does not pronounce on the validity of customer transactions.

Why RBI Acted

KYC / AMLReporting & disclosureOther

After a NABARD statutory inspection with reference to the bank’s financial position as on March 31, 2025, RBI found sustained charges warranting penalty. The bank failed to submit credit information of its borrowers to all four Credit Information Companies, did not put in place a system for periodic review of risk categorisation of accounts, did not have robust software for effective identification and reporting of suspicious transactions, and did not transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.

Operating Impact

The bank must absorb the ₹3 lakh penalty and address the compliance gaps identified by RBI. Forward-lookingly, it needs to strengthen CIC reporting, KYC/AML controls, suspicious transaction monitoring, risk categorisation review processes, and timely transfer of eligible unclaimed amounts; the order may also be followed by other supervisory action if RBI deems necessary.

Regulatory Basis

  • Section 26A read with Section 56 of the Banking Regulation Act, 1949
  • Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
  • Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005

Action Facts

Primary Impact
Fine: Rs 3.00 L
Order Date
19 Jun 2026
Effective From
19 Jun 2026
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank