The Reserve Bank of India has imposed a monetary penalty of Rs 3 lakh on Jilla Sahkari Bank Limited, Kanpur, Uttar Pradesh, for non-compliance with certain Know Your Customer (KYC) norms.
The penalty, ordered on January 30, 2026, was levied under the Banking Regulation Act following supervisory findings of regulatory lapses. The bank’s statutory inspection was carried out by the 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 establish 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 action relates solely to compliance deficiencies and does not affect the validity of customer transactions. It added that the penalty is without prejudice to any further regulatory action that may be taken.