Reserve Bank of India imposes monetary penalty on The Jammu & Kashmir State Co-operative Bank Limited, Srinagar

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Jammu & Kashmir State Co-operative Bank Limited, Srinagar by order dated September 23, 2021. The action followed a NABARD statutory inspection that found the bank had opened branches without obtaining prior permission from RBI, violating section 23 read with section 56 of the Banking Regulation Act, 1949. RBI issued a show-cause notice, considered the bank’s reply, and then concluded that the contravention was substantiated and merited penalty under section 47A(1)(c) read with section 46(4)(i) and section 56 of the Act.