RBI imposes monetary penalty on The Jalgaon People’s Co-operative Bank Ltd., Jalgaon, Maharashtra

Case Brief

By an order dated August 26, 2021, RBI imposed a monetary penalty of ₹20 lakh on The Jalgaon People’s Co-operative Bank Ltd., Jalgaon, Maharashtra. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection that found non-compliance with RBI’s direction on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)'. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the charge was substantiated.