RBI imposes a ₹5 lakh penalty on The Monghyr-Jamui Central Co-operative Bank for KYC non-compliance
9 October 2026
The Reserve Bank of India has imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar.
The penalty is for non-compliance with the Reserve Bank's Know Your Customer (KYC) directions.
The order was passed on September 25, 2026.
The action followed a statutory inspection by the National Bank for Agriculture and Rural Development with reference to the bank's financial position as on March 31, 2026.
The penalty was imposed under the powers vested in the Reserve Bank under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The Reserve Bank said the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement the bank has entered into with its customers.
In plain words
KYC Know Your Customer — The Reserve Bank's customer identification and verification requirements for banks.
NABARD National Bank for Agriculture and Rural Development — The apex development bank that inspects co-operative and regional rural banks.
Section 47A Section 47A of the Banking Regulation Act, 1949 — The provision that empowers the Reserve Bank to impose monetary penalties on banks.