Recorded RBI impact
Fine: Rs 3.00 L
Monetary penalty · Fresh imposition
Published by RBI
12 Feb 2026
Case Brief
RBI, by order dated February 09, 2026, imposed a monetary penalty of ₹3 lakh on The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan. The action followed a NABARD statutory inspection and a show-cause proceeding in which RBI found sustained charges of non-compliance with its KYC directions, specifically failures to review risk categorisation of accounts at least once every six months and to periodically update customer KYC as required. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
Why RBI Acted
Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2025, RBI issued a show-cause notice based on supervisory findings of non-compliance with RBI directions and related correspondence. RBI found the bank had failed to put in place a system for periodic review of risk categorisation of accounts at least once in six months, and had also failed to carry out periodic updation of KYC of its customers as per the prescribed periodicity. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
Operating Impact
The bank must absorb the ₹3 lakh penalty and address the KYC control weaknesses identified by RBI. There is no stated operational ban or restriction in this release, but the findings may expose the bank to further supervisory action if compliance gaps persist.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act
Action Facts
- Primary Impact
- Fine: Rs 3.00 L
- Order Date
- 9 Feb 2026
- Effective From
- 9 Feb 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank