What specific KYC failure led to this penalty?

The bank did not implement a periodic review of risk categorisation of accounts and lacked robust software for identifying and reporting suspicious transactions, violating RBI's KYC directions.

Does this penalty affect the bank's customer transactions?

No, the penalty is for regulatory non-compliance and does not invalidate any customer agreements or transactions.

Home › Circulars › RBI press release 62988

RBI fines Sultanpur Jilla Sahkari Bank for KYC, CIC, and deposit rule breaches

Source: Reserve Bank of India · Press Release prid 62988 · ~1 min read

RBI imposed a ₹3 lakh penalty on Sultanpur Jilla Sahkari Bank for failing to submit borrower credit information to all four CICs, not putting in place a system for periodic review of risk categorisation, not putting in place robust software for identifying and reporting suspicious transactions, and failing to transfer eligible unclaimed amounts to DEAF within prescribed time.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…

Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62988 — summary by BankPulse (bankpulse.ai).

RBI fines Sultanpur Jilla Sahkari Bank for KYC, CIC, and deposit rule breaches

💬 Banker Discussion

Help us keep this accurate

Get RBI updates for your role

Spotted an error? Earn 500 BankPulse Credits

What would make BankPulse more useful for you?