Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
8 Oct 2026
Case Brief
RBI, by order dated September 25, 2026, imposed a monetary penalty of ₹5 lakh on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar. The penalty was levied for non-compliance with RBI directions on Know Your Customer (KYC), specifically for failing to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after inspection and subsequent show-cause proceedings.
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, 1949, after supervisory inspection found that the bank had not complied with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload KYC records of customers to CKYCR within the prescribed timeline.
Operating Impact
The bank must absorb the financial penalty and ensure future compliance with RBI’s KYC requirements, especially timely CKYCR uploads. The order does not say it affects customers’ transactions or the validity of existing agreements, but it signals continued supervisory scrutiny and possible further action for similar lapses.
Regulatory Basis
- Section 47A(1)(c)
- Section 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 25 Sept 2026
- Effective From
- 25 Sept 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank