RBI Imposes ₹2 Lakh Penalty on UP-based Mau Jila Sahakari Bank
Moneylife Digital Team 05 January 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹2 lakh on Mau, Uttar Pradesh-based Jila Sahakari Bank Ltd for non-compliance with directions issued by RBI on know-your-customer (KYC).
 
RBI’s statutory inspection revealed that Jila Sahakari Bank had failed to establish a system for the periodic review of account risk categorisation, with such reviews required to be conducted at least once every six months. The inspection also found that the lender did not carry out periodic updates of the KYC details of its customers.
 
After considering the reply and oral submissions of Jila Sahakari Bank during the personal hearing, RBI states that it has concluded that the non-compliance with its directions was substantiated and warranted the imposition of a monetary penalty.
 
RBI says the penalty imposed on Jila Sahakari Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered by the banks with their customers.
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