Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
2 Feb 2026
Case Brief
By an order dated January 30, 2026, RBI imposed a monetary penalty of ₹1 lakh on The Jaipur Central Co-operative Bank Ltd., Rajasthan. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act after an inspection conducted by NABARD and subsequent supervisory proceedings found non-compliance with RBI directions on KYC. RBI sustained the charge that the bank failed to maintain a system for periodic review of risk categorisation of accounts at least once in 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 had failed to put in place a system for periodic review of risk categorisation of accounts with periodicity of at least once in six months.
Operating Impact
The bank must bear the ₹1 lakh penalty, but the release does not impose any new operating restriction. The action serves as a regulatory reprimand for KYC control deficiencies and may support further RBI action if additional violations are found.
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 1.00 L
- Order Date
- 30 Jan 2026
- Effective From
- 30 Jan 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank