AnyTime News 
Bank failed to report borrowers’ credit information to all CICs and missed prescribed timeline for uploading KYC records
Pooja Srivastava
Anytime News Network
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.15 lakh on Jilla Sahakari Bank Ltd., Azamgarh, Uttar Pradesh, for non-compliance with certain regulatory directions relating to Credit Information Companies (CICs) and Know Your Customer (KYC) requirements.
The penalty was imposed through an RBI order dated September 9, 2026, following supervisory findings concerning the bank’s compliance with regulatory requirements.
The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as of March 31, 2025. The inspection identified shortcomings in compliance with RBI directions.
Following the supervisory findings and related correspondence, RBI issued a notice to the bank seeking an explanation on why a monetary penalty should not be imposed. The central bank subsequently considered the bank’s reply, additional submissions and oral arguments presented during a personal hearing before concluding that the identified lapses warranted regulatory action.
According to RBI, one of the key deficiencies was the bank’s failure to report borrowers’ credit information to all Credit Information Companies. Timely and comprehensive reporting of credit information is an important component of the financial system as it supports accurate credit records and strengthens transparency in lending.
The second lapse related to KYC records. RBI found that the bank had failed to upload customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. Timely updating of KYC records is an important part of regulatory compliance and customer identification processes within the banking system.
RBI has clarified that the penalty is based on deficiencies in regulatory compliance and should not be interpreted as a finding on the validity of any transaction or agreement entered into by the bank with its customers.
The central bank also stated that the imposition of the monetary penalty is without prejudice to any other action that may be initiated against the bank.
The penalty has been imposed under the relevant provisions of the Credit Information Companies (Regulation) Act, 2005 and the Banking Regulation Act, 1949.
The action underscores the importance of timely credit-information reporting and strict adherence to KYC-related requirements by cooperative banks.
