Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 crore on Janata Sahakari Bank Ltd., Pune by order dated October 16, 2019. The penalty arose from a statutory inspection with reference to the bank’s financial position as on March 31, 2018, which found non-compliance with RBI directions on Income Recognition and Asset Classification (IRAC) norms, management of advances, exposure norms, and statutory/other restrictions. RBI also noted issues relating to issuance of ATM-cum-debit cards in the background section. After issuing a show-cause notice and considering the bank’s written reply and oral submissions, RBI concluded that the contraventions warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Co-operative bank
- Location