**Executive Summary**
This press release, dated January 05, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on Jila Sahakari Bank Limited, Mau, Uttar Pradesh, due to non-compliance with certain KYC directions. The order was issued on December 31, 2025. This penalty was 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 BR Act.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹2 lakh on Jila Sahakari Bank Limited for KYC non-compliance.
* The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of BR Act.
* **Reasons for Penalty:**
* The penalty is a result of deficiencies in regulatory compliance found during a statutory inspection by NABARD as of March 31, 2024.
* The bank failed to implement a system for periodic review of risk categorisation of accounts at least once every six months.
* The bank failed to carry out periodic updation of KYC of its customers.
* **Disclaimer:**
* The penalty is based on regulatory compliance deficiencies and does not question the validity of bank transactions with customers.
* The monetary penalty does not preclude any other actions that the RBI may initiate against the bank.
**Impact Analysis**
**Jila Sahakari Bank Limited, Mau, Uttar Pradesh**
* **Impact:**
The bank incurs a financial penalty of ₹2 lakh and faces potential reputational damage.
* **Action Required:**
The bank must pay the penalty, implement corrective measures to address the identified deficiencies in KYC compliance, and ensure adherence to RBI directions going forward.
**RBI**
* **Impact:**
RBI enhances its regulatory oversight by enforcing compliance with KYC guidelines.
* **Action Required:**
RBI will ensure that payment is made and will take any additional actions needed to ensure full compliance by the bank.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Banking Regulation (BR) Act: Act under which the penalty was imposed, specifically sections 47A(1)(c), 46(4)(i), and 56.
Know Your Customer (KYC): RBI directions related to KYC, which the bank failed to comply with.
Jila Sahakari Bank Limited, Mau, Uttar Pradesh: The bank on which the monetary penalty was imposed.
National Bank for Agriculture and Rural Development (NABARD): The entity that conducted the statutory inspection of the bank.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 05, 2026
RBI imposes monetary penalty on Jila Sahakari Bank Limited, Mau,
Uttar Pradesh
The Reserve Bank of India (RBI) has, by an order dated December 31, 2025,
imposed a monetary penalty of ₹2 lakh (Rupees Two Lakh only) on Jila Sahakari Bank
Limited, Mau, Uttar Pradesh (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 47A(1)(c) read
with Sections 46(4)(i) and 56 of BR Act.
The statutory inspection of the bank was conducted by National Bank for Agriculture
and Rural Development (NABARD) with reference to its financial position as on March
31, 2024. 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 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:
i. put in place a system of periodic review of risk categorisation of accounts, with
such periodicity being at least once in six months; and
ii. carry out periodic updation of KYC of its customers.
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)
Press Release: 2025-2026/1846 Chief General Manager