The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.03 lakh on Jai Bhawani Sahakari Bank Ltd., Pune, for non-compliance with certain regulatory directions relating to Credit Information Companies (CICs) and Know Your Customer (KYC) norms.

The penalty was imposed through an order dated August 28, 2026, under provisions of the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.

RBI's statutory inspection of the bank was conducted with reference to its financial position as of March 31, 2025. Following the inspection and subsequent review of the bank's response, the central bank found certain regulatory lapses warranting the penalty.

The bank was found to have failed to report borrowers' credit information to all Credit Information Companies and not reviewed the risk categorisation of accounts at the prescribed intervals.

RBI clarified that the action relates to regulatory compliance deficiencies and does not question the validity of transactions or agreements entered into by the bank with its customers. The penalty is also without prejudice to any other action that may be initiated against the bank.