The Reserve Bank of India (RBI), by an order dated December 31, 2025, has imposed a monetary penalty of Rs 2 lakh on Jila Sahakari Bank Limited, Mau, Uttar Pradesh, for non-compliance with certain directions related to Know Your Customer (KYC) norms.

The penalty has been levied under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act. The statutory inspection of the bank was carried out by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2024.

Based on supervisory findings, RBI found that the bank failed to put in place a system for periodic review of risk categorisation of accounts, at least once every six months, and did not carry out periodic updation of KYC details of its customers. RBI clarified that the penalty is based on regulatory compliance deficiencies and does not impact the validity of any transaction or agreement between the bank and its customers, nor does it preclude any further action against the bank.