Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3 lakh on The Ganganagar Kendriya Sahkari Bank Limited, Rajasthan, for non-compliance with its Know Your Customer (KYC) guidelines.
The penalty was imposed through an order dated February 9, 2026, under the provisions of the Banking Regulation Act, following supervisory findings based on a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) as of March 31, 2025.
RBI found that the bank failed to implement a system for periodic review of customer risk categorisation at least once every six months and did not carry out periodic KYC updates as required.
The central bank clarified that the penalty is based on regulatory compliance deficiencies and does not affect the validity of any transactions or agreements entered into by the bank with its customers. RBI also noted that the action is without prejudice to any further regulatory measures that may be taken against the bank.