Regulatory Alerts2026-08-27
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RBI imposes monetary penalty on Jalna District Central Co-operative Bank Ltd., Maharashtra
A monetary penalty of ₹50,000 was imposed by an order dated August 25, 2026, on Jalna District Central Co-operative Bank Ltd., Maharashtra for non-compliance with directions issued by the Reserve Bank of India on 'Membership of Credit Information Companies (CICs) by Co-operative Banks' and 'Know Your Customer (KYC)'. The sustained charges identified that the bank failed to report credit information of its borrowers to all Credit Information Companies and did not carry out periodic review of risk categorisation of accounts with such periodicity being at least once in six months. These deficiencies were identified following a statutory inspection conducted by the National Bank for Agriculture and Rural Development with reference to the financial position as on March 31, 2025.
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( 340 kb ) Date : Aug 27, 2026 RBI imposes monetary penalty on Jalna District Central Co-operative Bank Ltd., Maharashtra
The Reserve Bank of India (RBl) has, by an order dated August 25, 2026, imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only) on Jalna District Central Co-operative Bank Ltd., Maharashtra (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 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) 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; and
carry out periodic review of risk categorisation of accounts, with such periodicity being at least once in six months.
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: 2026-2027/975
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