RBI Imposes ₹3 Lakh Penalty on Sultanpur Jilla Sahkari Bank from Uttar Pradesh
Moneylife Digital Team 22 June 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹3 lakh on Uttar Pradesh-based Sultanpur Jilla Sahkari Bank Ltd for non-compliance with RBI directions relating to membership of credit information companies (CICs) by co-operative banks and know-your-customer (KYC) norms.
 
The statutory inspection of Sultanpur Jilla Sahkari Bank, which was conducted by the National Bank for Agriculture and Rural Development (NABARD), revealed several regulatory lapses. The inspection found that the lender had failed to submit the borrower's credit information to all four credit information companies (CICs) and had not put in place a system for periodic review of the risk categorisation of customer accounts.
 
NABARD also found that Sultanpur Jilla Sahkari Bank had not implemented robust software for the effective identification and reporting of suspicious transactions. Further, it failed to transfer eligible unclaimed amounts from certain accounts to the Depositor Education and Awareness Fund (DEA Fund) within the prescribed timeline.
 
After considering Sultanpur Jilla Sahkari Bank's reply to the notice, oral submissions made during the personal hearing, and the additional submissions made by it, RBI says the charges against the lender are sustained and warrant the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Sultanpur Jilla Sahkari Bank is based on regulatory compliance deficiencies and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
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