RBI imposes monetary penalty on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar
The Reserve Bank of India (RBI) has, by an order dated September 25, 2026, imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section…
On September 25, 2026, the Reserve Bank of India (RBI) imposed a fine of ₹5 lakh on The Monghyr-Jamui Central Co-operative Bank Limited, located in the Bihar region. The penalty was handed down for the bank's failure to adhere to Know Your Customer (KYC) directives issued by the RBI. This measure was taken in accordance with Section 47A(1)(c) of the Banking Regulation Act, 1949, alongside Sections 46(4)(i) and 56.
The RBI conducted a statutory inspection of the bank, focusing on its financial standing as of March 31, 2026, to ascertain non-compliance with the RBI's guidelines. Following the inspection, the bank was served with a notice requesting an explanation regarding its lack of compliance. After receiving the bank's response, additional written submissions, and an oral hearing, the RBI concluded that the bank had violated the stipulated timelines for uploading KYC records onto the Central KYC Records Registry (CKYCR).
This decision primarily reflects the bank's regulatory compliance deficiency, and it does not address the legitimacy of any transactions or agreements the bank may have established with its customers.
The RBI's action is meant to deter non-compliance with regulatory directives, but it does not negate the possibility of further actions being taken by the RBI against the bank.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
