RBI Slaps ₹1.15 Lakh Penalty on Azamgarh Jilla Sahakari Kendriya Bank for CIC, KYC Lapses
Moneylife Digital Team 11 September 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹1.15 lakh on Azamgarh, Uttar Pradesh-based Jilla Sahakari Kendriya Bank Ltd for non-compliance with RBI’s directions relating to membership of credit information companies (CICs) by cooperative banks and know-your-customer (KYC) requirements.
 
The statutory inspection of Azamgarh Jilla Sahakari Kendriya Bank, conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the Bank’s financial position as of 31 March 2025, found that the lender had failed to report its borrowers' credit information to all CICs.
 
The inspection also found that Azamgarh Jilla Sahakari Kendriya Bank had failed to upload customers' KYC records to the central KYC records registry (CKYCR) within the prescribed timeline.
 
After considering the Bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against Azamgarh Jilla Sahakari Kendriya Bank were sustained, warranting imposition of monetary penalty.
 
However, the banking regulator clarified that its action against Azamgarh Jilla Sahakari Kendriya Bank is based on deficiencies in regulatory compliance 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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