RBI imposes monetary penalty on Hardoi Jilla Sahkari Bank Ltd., Uttar Pradesh

Case Brief

By an order dated April 21, 2026, RBI imposed a monetary penalty of ₹1 lakh on Hardoi Jilla Sahkari Bank Ltd., Uttar Pradesh. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act after NABARD’s statutory inspection and subsequent supervisory review found non-compliance with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to put in place a system for periodic review of the risk categorisation of accounts, with a periodicity of at least once in six months. RBI noted that the action was based on regulatory deficiencies and did not pronounce on the validity of any transaction or agreement with customers.