The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on The Jaipur Central Co-operative Bank Ltd., Rajasthan, for non-compliance with certain Know Your Customer (KYC) guidelines.
The penalty, ordered on January 30, 2026, was levied under provisions of the Banking Regulation Act following supervisory findings related to regulatory breaches. The statutory inspection of the bank was carried out by National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as of March 31, 2025.
RBI said the bank failed to implement a system for periodic review of risk categorisation of customer accounts, which is required to be conducted at least once every six months.
The central bank clarified that the penalty pertains to compliance deficiencies and does not affect the validity of any customer transactions. It also noted that the action is without prejudice to any further regulatory measures that may be initiated.