RBI imposes monetary penalty on Jilla Sahakari Bank Ltd., Azamgarh, Uttar Pradesh
The Reserve Bank of India (RBI) has, by an order dated September 09, 2026, imposed a monetary penalty of ₹1.15 lakh (Rupees One Lakh and Fifteen Thousand only) on Jilla Sahakari Bank Ltd., Azamgarh, Uttar Pradesh (the bank) for non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’ and ‘Know Your Customer (KYC)’. This…
On September 09, 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹1.15 lakh on Jilla Sahakari Bank Ltd., located in Azamgarh, Uttar Pradesh. The penalty was issued due to the bank's non-compliance with directives issued by the RBI regarding membership of Credit Information Companies (CICs) by Co-operative Banks and Know Your Customer (KYC) requirements.
The RBI's supervisory inspection, conducted by the National Bank for Agriculture and Rural Development (NABARD), was based on the bank's financial position as of March 31, 2025. Following the inspection, a notice was sent to the bank, requesting it to explain why a penalty should not be imposed. After evaluating the bank's response, additional submissions, and oral arguments during a personal hearing, the RBI concluded that the bank had failed to report credit information of borrowers to all CICs and had not uploaded KYC records onto the Central KYC Records Registry (CKYCR) within the required timeframe.
The RBI's action is focused on regulatory compliance issues and does not comment on the validity of any transactions or agreements between the bank and its customers. The penalty is not intended to influence any other potential actions that RBI may take against the bank.
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