India, March 24 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on The Pali District Central Co-operative Bank Ltd., Rajasthan, for non-compliance with its Know Your Customer (KYC) guidelines.
The penalty, issued through an order dated March 17, 2026, follows supervisory findings based on a statutory inspection conducted by NABARD with reference to the bank's financial position as on March 31, 2025.
The RBI found that the bank had failed to implement a system for periodic review of risk categorisation of customer accounts, with the required frequency of at least once every six months, thereby violating regulatory norms.
After issuing a show-cause notice and reviewing the bank's response along with oral subm...