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

Case Brief

The RBI imposed a monetary penalty of ₹3 lakh on Sultanpur Jilla Sahkari Bank Ltd., Uttar Pradesh, following a statutory inspection conducted by NABARD for the bank’s financial position as on March 31, 2025. The penalty was imposed for contravention of Section 26A read with Section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks and on Know Your Customer requirements. RBI found that the bank had failed to submit credit information of its borrowers to all four CICs, had not established a system for periodic review of risk categorisation of accounts, had not put in place robust software for identifying and reporting suspicious transactions, and had not transferred eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time. RBI stated that the penalty is based on deficiencies in statutory and regulatory compliance and does not pronounce on the validity of customer transactions.