RBI Imposes ₹4 Lakh Penalty on Kanpur Jilla Sahkari Bank, Jaipur Central Cooperative Bank over KYC Lapses
Moneylife Digital Team 03 February 2026
Reserve Bank of India (RBI) has imposed penalties totalling ₹4 lakh on two cooperative banks for violations of its know-your-customer (KYC) norms. Kanpur, Uttar Pradesh-based Jilla (Zila) Sahkari Bank Ltd has been fined ₹3 lakh, while Rajasthan-based Jaipur Central Cooperative Bank Ltd has been penalised ₹1 lakh.
 
The action follows statutory inspections, which were conducted by the National Bank for Agriculture and Rural Development (NABARD), which revealed lapses in KYC compliance at both banks. 
 
According to the regulator, the lenders failed to put in place a system for periodic review of customer account risk categorisation, a requirement that must be carried out at least once every six months.
 
RBI says that after examining both the banks’ written replies and oral submissions made during personal hearings, it concluded that the charges of non-compliance are established and warranted the imposition of monetary penalties.
 
The central bank clarified that the penalties are based solely on deficiencies in regulatory compliance and are not intended to comment on the validity of any transaction or agreement entered into by the banks with their customers.
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