RBI imposes monetary penalty on The Jaipur Central Co-operative Bank Ltd., Rajasthan

**Executive Summary** The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Jaipur Central Co-operative Bank Ltd., Rajasthan, due to non-compliance with KYC directions. The penalty was imposed via an order dated January 30, 2026, based on findings from a statutory inspection by NABARD as of March 31, 2025. The press release is dated February 02, 2026. **Key Points / Main Content** * **Monetary Penalty:** * RBI imposed a monetary penalty of ₹1 lakh on The Jaipur Central Co-operative Bank Ltd., Rajasthan. * The penalty is for non-compliance 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 Banking Regulation Act. * **Basis for Penalty:** * The statutory inspection of the bank was conducted by NABARD with reference to its financial position as on March 31, 2025. * The penalty was triggered by the bank's failure to put in place a system of periodic review of risk categorisation of accounts at least once in six months. * **Clarifications:** * The action is based on deficiencies in regulatory compliance. * The action 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 monetary penalty does not preclude RBI from initiating other actions against the bank. **Impact Analysis** **The Jaipur Central Co-operative Bank Ltd., Rajasthan** * **Impact:** The bank faces a monetary penalty of ₹1 lakh and potential reputational damage. * **Action Required:** The bank must pay the penalty and implement a system for periodic review of risk categorisation of accounts as per RBI guidelines. RBI may take additional actions against the bank. **RBI** * **Impact:** RBI needs to monitor and enforce compliance. * **Action Required:** No immediate action is required but continued monitoring of the bank and other cooperative banks. **NABARD** * **Impact:** Responsible for the financial health of the bank. * **Action Required:** N/A **Customers of The Jaipur Central Co-operative Bank Ltd., Rajasthan** * **Impact:** Limited, as the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. * **Action Required:** No action required.

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