Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 lakh on Jilla Sahakari Kendriya Bank Maryadit for violation of provisions under the Banking Regulation Act, 1949 and non-compliance with RBI’s Know Your Customer (KYC) norms.

The penalty was imposed through an order dated May 12, 2026, under powers granted to the RBI under the Banking Regulation Act.

According to the central bank, the action follows a statutory inspection conducted by NABARD based on the bank’s financial position as of March 31, 2025. After reviewing supervisory findings, the bank’s response and oral submissions during a personal hearing, RBI found certain compliance lapses to be sustained.

The RBI said the bank failed to transfer eligible unclaimed amounts to the Depositor Education and Awareness Fund within the stipulated timeline. It also failed to conduct periodic reviews of risk categorisation of accounts at least once every six months, as required under KYC guidelines.

The central bank clarified that the penalty is based on regulatory compliance deficiencies and does not affect the validity of any transactions or agreements entered into by the bank with its customers.