**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan, due to non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This action follows a statutory inspection conducted by NABARD as of March 31, 2025, and is effective as of February 12, 2026. The penalty was ordered on February 09, 2026.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹3 lakh on The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan.
* The penalty is for non-compliance with RBI directions on KYC.
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act.
* **Background:**
* The statutory inspection of the bank was conducted by NABARD as of March 31, 2025.
* The penalty was warranted after the bank failed to adequately address the RBI's concerns following a notice to show cause.
* **Failures Identified:**
* The bank 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.
* The bank failed to carry out periodic updation of KYC of its customers as per the prescribed periodicity.
* **Disclaimer:**
* The 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 imposition of the penalty does not prevent further action by the RBI against the bank.
**Impact Analysis**
**The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan**
* **Impact:**
* Financial penalty of ₹3 lakh.
* Reputational damage due to non-compliance.
* Potential for further regulatory scrutiny.
* **Action Required:**
* Pay the monetary penalty.
* Implement corrective measures to address the identified deficiencies in KYC compliance.
* Ensure compliance with all RBI directions to avoid future penalties.
**RBI**
* **Impact:**
* Reinforces its regulatory oversight and commitment to enforcing KYC guidelines.
* **Action Required:**
* Monitor the bank's corrective actions to ensure compliance.
* Consider further action if the bank fails to address the deficiencies.
**Customers of The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan**
* **Impact:**
* The document states that the penalty 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, indicating no direct impact on existing transactions.
* **Action Required:**
* No immediate action required, but customers may want to stay informed about the bank's compliance status.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Banking Regulation Act: The law under which the penalty is imposed, specifically Sections 47A(1)(c), 46(4)(i), and 56.
Know Your Customer (KYC): The directions related to which the bank was non-compliant.
Ganganagar Kendriya Sahkari Bank Limited, Rajasthan: The bank subject to the monetary penalty.
National Bank for Agriculture and Rural Development (NABARD): Conducted the statutory inspection of the bank.
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भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
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www.rbi.org.in/hindi
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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 12, 2026
RBI imposes monetary penalty on The Ganganagar Kendriya Sahkari Bank
Limited, Rajasthan
The Reserve Bank of India (RBI) has, by an order dated February 09, 2026,
imposed a monetary penalty of ₹3 lakh (Rupees Three Lakh only) on the
Ganganagar Kendriya Sahkari Bank Limited, Rajasthan (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 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 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)
Press Release: 2025-2026/2098 Chief General Manager