The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3.50 lakh on The Jalgaon District Central Co-operative Bank Ltd., Maharashtra, for violating provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI’s Know Your Customer (KYC) guidelines. The penalty order was issued on September 15, 2025, under the powers vested in RBI by Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Act.

The penalty follows a statutory inspection of the bank conducted by NABARD based on its financial position as of March 31, 2024. Subsequent supervisory findings revealed contraventions and non-compliance, including sanctioning loans to directors and issuing multiple customer identification codes to the same individuals instead of assigning a Unique Customer Identification Code (UCIC).

RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not question the validity of any transactions or agreements entered into by the bank with its customers. The monetary penalty is without prejudice to further regulatory action that RBI may initiate against the bank.