RBI fines Monghyr-Jamui Central Co-op Bank, Bihar, ₹5 lakh over KYC
The district central co-operative bank in Bihar was fined ₹5 lakh for not uploading customers' KYC records to the central KYC registry on time.
Official title: RBI imposes monetary penalty on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar · Press Release 2026-2027/1287
What happened
RBI has fined The Monghyr-Jamui Central Co-operative Bank Limited, Bihar, ₹5 lakh by an order dated September 25, 2026. The bank broke RBI's Know Your Customer (KYC) rules: it did not upload its customers' KYC records to the Central KYC Records Registry (CKYCR) within the deadline.
The problem came to light in a statutory inspection by NABARD, which inspects rural co-operative banks, based on the bank's position as on March 31, 2026. RBI sent the bank a show-cause notice and considered its written reply, further submissions and a personal hearing before deciding the charge was proved.
RBI says the fine is for a lapse in following the rules. It does not judge the validity of any transaction or agreement between the bank and its customers, and RBI may still take other action against the bank.
What it means for you
If you bank with Monghyr-Jamui Central Co-operative Bank, nothing changes for you: your deposits, loans and transactions remain valid, and the fine is paid by the bank, not by customers. The bank may ask you to update your KYC so it can upload it to the registry, which can save you from repeating KYC at other financial firms later.
What it means for businesses
Businesses dealing with the bank are not affected. For other co-operative banks, it is a reminder that RBI penalises late uploads to the central KYC registry.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
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