On September 15, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹3.50 lakh on The Jalgaon District Central Cooperative Bank Ltd., Maharashtra, for contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with KYC directions issued by RBI. This penalty was imposed under the powers conferred by Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act. The penalty follows a statutory inspection by NABARD referencing the bank's financial position as of March 31, 2024. The RBI found that the bank had (i) sanctioned director related loans and (ii) allotted multiple customer identification codes to certain individual customers instead of a Unique Customer Identification Code (UCIC) for each individual customer. The action is based on deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction. The imposition of the penalty does not prejudice any other action that may be initiated by RBI against the bank. Contact information for the Department of Communication, Central Office, Reserve Bank of India is available at Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001, email: helpdocrbi.org.in, Phone: 022 2266 0502. The press release number is 2025-2026/1123. The Chief General Manager is Puneet Pancholy. Website: www.rbi.org.in.
Key Entities Referenced
Banking Regulation Act, 1949: Act contravened by The Jalgaon District Central Cooperative Bank Ltd., specifically Section 20 read with Section 56, and provisions related to penalties.
The Jalgaon District Central Cooperative Bank Ltd., Maharashtra: Bank on which the Reserve Bank of India (RBI) imposed a monetary penalty.
Reserve Bank of India: The regulator that imposed the monetary penalty for contravention of the Banking Regulation Act and KYC directions.
Know Your Customer: Directions issued by RBI that the bank failed to comply with.
National Bank for Agriculture and Rural Development: The entity that conducted the statutory inspection of the bank.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
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
September 18, 2025
RBI imposes monetary penalty on The Jalgaon District Central Co-operative
Bank Ltd., Maharashtra
The Reserve Bank of India (RBl) has imposed, by an order dated September 15,
2025, a monetary penalty of ₹3.50 lakh (Rupees Three Lakh Fifty Thousand only) on
The Jalgaon District Central Co-operative Bank Ltd., Maharashtra (the bank) for
contravention of provisions of Section 20 read with Section 56 of the Banking
Regulation Act, 1949 (BR Act) and 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 Section
46(4)(i) and Section 56 of the BR Act.
The statutory inspection of the bank was conducted by the National Bank for
Agriculture and Rural Development (NABARD), with reference to its financial position
as on March 31, 2024. Based on supervisory findings of contravention of statutory
provisions / 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 provisions and
directions. After considering the bank's reply to the notice, additional submissions
made by it 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:
i) sanctioned director related loans; and
ii) allotted multiple customer identification codes to certain individual customers
instead of a Unique Customer Identification Code (UCIC) for each individual
customer.
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.
(Puneet Pancholy)
Press Release: 2025-2026/1123 Chief General Manager