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The Jalgaon District Central Co-operative Bank Ltd., Maharashtra

Co-operative bankJalgaon, Maharashtra

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

Recorded RBI impact

Fine: Rs 3.50 L

Monetary penalty · Fresh imposition

S2

Published by RBI

18 Sept 2025

Case Brief

RBI, by order dated September 15, 2025, imposed a monetary penalty of Rs 3.50 lakh on The Jalgaon District Central Co-operative Bank Ltd., Maharashtra. The penalty was imposed after a statutory inspection by NABARD and a show-cause process, and was based on contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Know Your Customer (KYC). RBI found that the bank had sanctioned loans related to directors and had allotted multiple customer identification codes to certain individual customers instead of assigning a Unique Customer Identification Code (UCIC). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act.

Why RBI Acted

Lending normsKYC / AMLReporting & disclosure

Following a statutory inspection conducted by NABARD with reference to the bank's financial position as on March 31, 2024, RBI issued a show-cause notice for contravention of statutory provisions and non-compliance with RBI directions. After considering the bank's reply, additional submissions, and oral submissions at the personal hearing, RBI found the charges sustained and imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The sustained charges were sanctioning director-related loans and allotting multiple customer identification codes to certain individual customers instead of a UCIC, in breach of RBI's KYC directions and the Banking Regulation Act provisions cited.

Operating Impact

The bank must bear the monetary penalty, and the order serves as an enforcement action for past compliance failures. There is no stated operational restriction, but the bank remains exposed to possible further RBI action based on the same deficiencies.

Regulatory Basis

  • Section 20 read with Section 56 of the Banking Regulation Act, 1949
  • Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act

Action Facts

Primary Impact
Fine: Rs 3.50 L
Order Date
15 Sept 2025
Effective From
15 Sept 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank