**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, via order dated January 30, 2026, for non-compliance with KYC directions. This decision follows a statutory inspection by NABARD as of March 31, 2025, and subsequent show-cause notice.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a ₹1 lakh penalty on The Jaipur Central Co-operative Bank Ltd., Rajasthan.
* The penalty is for non-compliance with RBI's KYC directions.
* It was imposed under Sections 47A(1)(c), 46(4)(i) and 56 of the Banking Regulation Act.
* **Background:**
* The statutory inspection of the bank was conducted by NABARD on its financial position as of March 31, 2025.
* The penalty was based on supervisory findings and related correspondence regarding non-compliance.
* A notice was issued advising the bank to show cause as to why a penalty should not be imposed.
* **Basis for Penalty:**
* The bank failed to implement a system for the periodic review of risk categorization of accounts with a periodicity of at least once in six months.
* **Disclaimer:**
* The action is based on regulatory deficiencies and does not pronounce on the validity of transactions with customers.
* The penalty is without prejudice to any other action by RBI against the bank.
**Impact Analysis**
**The Jaipur Central Co-operative Bank Ltd., Rajasthan**
* **Impact**
* Financial penalty of ₹1 lakh.
* Potential reputational damage.
* Increased scrutiny from RBI.
* **Action Required**
* Pay the monetary penalty.
* Implement a system for periodic review of risk categorization of accounts.
* Address identified KYC compliance deficiencies.
* Cooperate with future RBI inspections and directives.
**RBI (Reserve Bank of India)**
* **Impact**
* Reinforces regulatory oversight and enforcement.
* Demonstrates commitment to KYC compliance within cooperative banks.
* **Action Required**
* Monitor the bank's compliance with corrective actions.
* Continue to enforce KYC guidelines across all regulated entities.
**Customers of The Jaipur Central Co-operative Bank Ltd., Rajasthan**
* **Impact**
* Indirectly impacted by improved regulatory compliance and risk management practices at the bank.
* **Action Required**
* None
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) read with Sections 46(4)(i) and 56).
The Jaipur Central Co-operative Bank Ltd., Rajasthan: The entity on which the monetary penalty was imposed.
Know Your Customer (KYC): Directions issued by RBI, for non-compliance of which the penalty was imposed.
National Bank for Agriculture and Rural Development (NABARD): The statutory inspection of the bank was conducted by NABARD.
प्रेस प्रकाशनी PRESS RELEASE
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 02, 2026
RBI imposes monetary penalty on The Jaipur Central Co-operative Bank Ltd.,
Rajasthan
The Reserve Bank of India (RBI) has, by an order dated January 30, 2026, imposed
a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Jaipur Central Co-
operative Bank Ltd., 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
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: 2025-2026/2031 Chief General Manager