Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
27 May 2026
Case Brief
By an order dated May 22, 2026, RBI imposed a monetary penalty of ₹2 lakh on The Jalore Central Co-operative Bank Limited, Rajasthan under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act. The penalty followed a statutory inspection by NABARD and a show-cause process. RBI found that the bank failed to maintain a system for periodic review of risk categorisation of accounts and failed to carry out periodic KYC updation of customers as required by RBI directions.
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 a statutory inspection by NABARD and subsequent show-cause proceedings. RBI found that The Jalore Central Co-operative Bank Limited had not put in place a system for periodic review of risk categorisation of accounts and had not carried out periodic updation of KYC of customers as per the prescribed periodicity, amounting to non-compliance with RBI KYC directions.
Operating Impact
The bank must absorb the monetary penalty and address the KYC compliance gaps identified by RBI. The order does not, by itself, restrict operations or affect customer transactions, but RBI noted that further action may still be initiated separately.
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 2.00 L
- Order Date
- 22 May 2026
- Effective From
- 22 May 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank