Reserve Bank of India imposes monetary penalty on Jammu and Kashmir Bank Limited

Case Brief

By an order dated December 01, 2025, RBI imposed a monetary penalty of ₹99.30 lakh on Jammu and Kashmir Bank Limited for contravention of section 26A of the Banking Regulation Act, 1949 and for non-compliance with RBI directions on the Internal Ombudsman Scheme 2018, Customer Service in Banks, and Know Your Customer (KYC) Directions. RBI said its supervisory inspection found that the bank did not escalate certain rejected complaints to the Internal Ombudsman, did not issue final complaint-redressal letters to customers, did not transfer eligible amounts to the Depositor Education and Awareness Fund within the required period, and lacked face-matching technology in V-CIP while also failing to verify customer profile information collected during V-CIP. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the BR Act.