RBI imposes monetary penalty on Jai Bhawani Sahakari Bank Ltd., Pune

On August 28, 2026, the Reserve Bank of India (RBI) announced a monetary penalty of ₹2.03 lakh against Jai Bhawani Sahakari Bank Ltd., located in Pune. The penalty was imposed due to the bank's non-compliance with specific directions issued by the RBI regarding the membership of Credit Information Companies (CICs) by co-operative banks and the 'Know Your Customer' (KYC) guidelines.

The RBI, exercising its powers under sections of the Banking Regulation Act, 1949, and the Credit Information Companies (Regulation) Act, 2005, conducted a statutory inspection of the bank's financial position as of March 31, 2025.

Based on the supervisory findings of non-compliance, the RBI issued a notice to Jai Bhawani Sahakari Bank Ltd., requesting an explanation as to why the penalty should not be imposed due to its failure to comply with the aforementioned directions. After reviewing the bank's response, additional submissions, and oral submissions during a personal hearing, the RBI concluded that the bank had not reported the credit information of its borrowers to all Credit Information Companies, and had not reviewed the risk categorization of its accounts according to the prescribed periodicity. These deficiencies in regulatory compliance warranted the imposition of the monetary penalty.

It is important to note that the penalty was not intended to determine the validity of any specific transactions or agreements between the bank and its customers. The RBI's action was solely based on regulatory compliance issues. Furthermore, the imposition of this monetary penalty does not preclude the RBI from initiating any other actions against the bank in the future.