RBI imposes monetary penalty on The Jalgaon District Central Co-operative Bank Ltd., Maharashtra

Case Brief

RBI, by order dated September 15, 2025, imposed a monetary penalty of Rs 3.50 lakh on The Jalgaon District Central Co-operative Bank Ltd., Maharashtra. The penalty was imposed after a statutory inspection by NABARD and a show-cause process, and was based on contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with RBI directions on Know Your Customer (KYC). RBI found that the bank had sanctioned loans related to directors and had allotted multiple customer identification codes to certain individual customers instead of assigning a Unique Customer Identification Code (UCIC). The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the BR Act.