RBI imposes monetary penalty on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh

Case Brief

RBI, by order dated November 20, 2025, imposed a monetary penalty of ₹2 lakh on The Fatehpur District Co-operative Bank Limited, Uttar Pradesh. The penalty was issued after supervisory inspection and subsequent show-cause proceedings, where RBI found sustained charges of non-compliance with directions on Know Your Customer (KYC). Specifically, the bank had failed to maintain a system for periodic review of risk categorisation of accounts at least once every six months and had also failed to carry out periodic updation of customer KYC. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.