**Executive Summary**
This press release, dated February 02, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on Jilla Sahkari Bank Limited, Kanpur, Uttar Pradesh, effective January 30, 2026. The penalty is for non-compliance with certain RBI directions related to 'Know Your Customer (KYC)' guidelines.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹3 lakh on Jilla Sahkari Bank Limited.
* The penalty was ordered on January 30, 2026.
* The penalty is for non-compliance with KYC directions.
* **Legal Basis:**
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
* **Inspection Findings:**
* NABARD conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025.
* The penalty follows supervisory findings of non-compliance with RBI directions.
* RBI issued a notice to the bank to show cause regarding the penalty.
* After considering the bank's response, RBI found the charge against the bank was sustained.
* **Specific Non-Compliance:**
* The bank failed to implement a system for periodic review of risk categorization of accounts, with reviews at least once every six months.
* **Disclaimer:**
* The action is based on regulatory compliance deficiencies.
* It doesn't affect the validity of bank transactions with customers.
* The penalty doesn't preclude other actions by RBI against the bank.
**Impact Analysis**
**Jilla Sahkari Bank Limited, Kanpur, Uttar Pradesh**
* **Impact:** Financial penalty of ₹3 lakh imposed; potential reputational damage due to non-compliance.
* **Action Required:** Implement a system of periodic review of risk categorization of accounts, and ensure compliance with RBI's KYC directives, pay the penalty.
**Reserve Bank of India (RBI)**
* **Impact:** Reinforcement of regulatory authority and compliance standards within the banking sector.
* **Action Required:** Monitor the bank's corrective actions and compliance with regulations.
**Bank Customers**
* **Impact:** Indirectly affected through the bank's potential changes in operations and increased scrutiny.
* **Action Required:** No direct action required, but may experience changes in KYC processes.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Banking Regulation Act: The act under which the penalty was imposed; specifically Sections 47A(1)(c), 46(4)(i), and 56.
Jilla Sahkari Bank Limited: The bank on which monetary penalty was imposed.
Kanpur, Uttar Pradesh: Location of the bank on which penalty was imposed.
Know Your Customer (KYC): The directions issued by RBI, for non-compliance with which, the penalty was imposed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
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
February 02, 2026
RBI imposes monetary penalty on Jilla Sahkari Bank Limited, Kanpur,
Uttar Pradesh
The Reserve Bank of India (RBI) has, by an order dated January 30, 2026,
imposed a monetary penalty of ₹3 lakh (Rupees Three Lakh only) on the Jilla Sahkari
Bank Limited, Kanpur, 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 the Banking Regulation 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, 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 and
oral submissions made during the personal hearing, RBI found, inter alia, that the
following charge against the bank was sustained, warranting imposition of monetary
penalty:
The bank had failed to put in place a system of 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)
Press Release: 2025-2026/2030 Chief General Manager