RBI imposes monetary penalty on The Janalaxmi Co-operative Bank Ltd., Nashik, Maharashtra

Case Brief

By an order dated July 29, 2021, RBI imposed a monetary penalty on The Janalaxmi Co-operative Bank Ltd., Nashik, Maharashtra. The penalty was levied because the bank did not comply with RBI directions relating to placement of deposits with other banks by primary (urban) co-operative banks and membership of credit information companies. RBI said the action followed a statutory inspection, a show-cause notice, and consideration of the bank’s replies and submissions, and was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.