Jain Co-Operative Bank Ltd, 80 Darya Ganj, New Delhi - Penalised

Case Brief

The Reserve Bank of India penalized Jain Cooperative Bank Ltd, 80 Darya Ganj, New Delhi-110002 with a monetary penalty of Rs 2 lakh under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated inter-bank exposure limits, exposure norms relating to the real estate sector, KYC guidelines, the Do's and Don'ts prescribed for the Board of Directors, and norms on loans to directors and their relatives. The bank also failed to submit compliance on previous RBI reports. The penalty was imposed after issuance of a show-cause notice and examination of the bank's written reply.