RBI imposes monetary penalty on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh

**Executive Summary** The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh, due to non-compliance with KYC directions. The order was issued on November 20, 2025, and the penalty is based on a statutory inspection by NABARD with reference to its financial position as on March 31, 2024. The press release is dated November 24, 2025. **Key Points / Main Content** * **Penalty Imposition:** * RBI imposed a monetary penalty of ₹2 lakh on The Fatehpur District Co-operative Bank Limited. * The penalty was ordered on November 20, 2025. * **Reason for Penalty:** * The bank was found non-compliant with certain directions issued by RBI on Know Your Customer (KYC). * The penalty is imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. * **Inspection Details:** * NABARD conducted the statutory inspection of the bank with reference to its financial position as on March 31, 2024. * The inspection revealed non-compliance with RBI directions. * **Bank's Failure:** * The bank failed to put in place a system of periodic review of risk categorisation of accounts (at least once in six months). * The bank failed to carry out periodic updation of KYC of its customers. * **Disclaimer:** * The action is based on deficiencies in regulatory compliance. * The penalty is without prejudice to any other action that may be initiated by RBI against the bank. **Impact Analysis** **The Fatehpur District Co-operative Bank Limited** * **Impact:** Faces a monetary penalty of ₹2 lakh due to non-compliance with RBI's KYC directions, which may impact its financial standing and reputation. * **Action Required:** Needs to address the deficiencies identified by RBI, including implementing a system for periodic review of risk categorization of accounts and ensuring periodic KYC updates. **RBI** * **Impact:** Regulatory body responsible for enforcing compliance, thus maintaining the integrity and stability of the banking system. * **Action Required:** Monitor the bank's compliance efforts and take further action if necessary. **Customers of The Fatehpur District Co-operative Bank Limited** * **Impact:** 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. The release doesn't state they are directly affected. * **Action Required:** No immediate action is required. However, they may need to stay informed about any changes or improvements the bank makes to its KYC processes.

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