Regulatory Alerts2026-08-31
Added
RBI imposes monetary penalty on Jai Bhawani Sahakari Bank Ltd., Pune
The Reserve Bank of India imposed a monetary penalty of ₹2.03 lakh on Jai Bhawani Sahakari Bank Ltd., Pune, for non-compliance with directions regarding membership of Credit Information Companies and Know Your Customer requirements. The penalty stems from the bank's failure to report credit information of its borrowers to all Credit Information Companies and its failure to review the risk categorization of accounts as per the prescribed periodicity. This action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
Search the Website
( 327 kb ) Date : Aug 31, 2026 RBI imposes monetary penalty on Jai Bhawani Sahakari Bank Ltd., Pune The Reserve Bank of India (RBI) has, by an order dated August 28, 2026, imposed a monetary penalty of ₹2.03 lakh (Rupees Two Lakh and Three Thousand only) on Jai Bhawani Sahakari Bank Ltd., Pune, (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 penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and under the provisions of Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
failed to report credit information of its borrowers to all Credit Information Companies.
failed to review the risk categorization of the accounts as per the prescribed periodicity.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/1005
2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Archives
Top
Back to previous page
More like this from RBI
RBI published 66 documents in the last 30 days. We email you each new one the day it's published.