RBI fines Bihar co-operative bank ₹5 lakh for late uploads of KYC records to CKYCR
The Reserve Bank of India has fined The Monghyr-Jamui Central Co-operative Bank Limited for not uploading customers' KYC records to the Central KYC Records Registry on time.
On 8 October 2026, the Reserve Bank of India (RBI) announced a monetary penalty of ₹5 lakh on The Monghyr-Jamui Central Co-operative Bank Limited, Bihar. The penalty order is dated 25 September 2026.
According to the RBI, a statutory inspection by NABARD (India's National Bank for Agriculture and Rural Development) of the bank's financial position as of 31 March 2026 found non-compliance with RBI directions. The RBI issued a show-cause notice and considered the bank's reply, additional submissions and oral submissions made at a personal hearing.
The RBI says one charge was sustained: the bank did not upload its customers' KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. CKYCR is India's central database of customer identity records, shared across regulated financial institutions. The penalty was imposed under Section 47A(1)(c), read with Sections 46(4)(i) and 56, of the Banking Regulation Act, 1949, for non-compliance with the RBI's Know Your Customer (KYC) directions.
The RBI says the penalty is based on deficiencies in regulatory compliance and does not pronounce on the validity of any transaction or agreement between the bank and its customers. It also says the penalty does not prevent any other action the RBI may take against the bank.
Why it matters to AML professionals
Central KYC registries only work if every institution uploads its records on time. A late upload can leave other institutions relying on missing or outdated identity data. AML professionals should treat registry reporting deadlines as a KYC control that supervisors test, not as back-office paperwork.
Red flags in this case
- A backlog of new customer records not yet uploaded to the central KYC registry
- Customer records uploaded without the required identity documents or fields
- Registry upload errors or rejections left unresolved
- No routine report tracking the age of pending registry uploads
If this landed in your queue
- Pull a list of accounts opened in the period and check each record's registry upload date
- Escalate any records past the prescribed upload timeline and record the reason for delay
- Fix rejected or incomplete uploads and confirm successful resubmission
- Add a regular ageing report on pending uploads to compliance monitoring
What control failed
Record keeping. The bank did not upload customers' KYC records to the Central KYC Records Registry within the prescribed timeline.
Key terms
- CKYCR (Central KYC Records Registry)
- India's central database of customer KYC records that regulated financial institutions must upload to and can retrieve from.
- Show-cause notice
- A formal notice asking a firm to explain why it should not be penalised for an alleged breach.
- Statutory inspection
- An inspection that a supervisor is required or empowered by law to carry out.
Interview angle
Why would a regulator fine a bank for late uploads to a central KYC registry?
Explain that the registry lets institutions rely on shared identity records, so late or missing uploads weaken KYC across the system. Mention monitoring upload deadlines and fixing rejected records as part of KYC operations.
Sources
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