Reserve Bank of India imposes monetary penalty on The Jammu Central Co-operative Bank Ltd., Jammu

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Jammu Central Co-operative Bank Ltd., Jammu by order dated January 20, 2022. The penalty was levied for contravention of provisions of Section 6 and Section 9 read with Section 56 of the Banking Regulation Act, 1949, under RBI's powers in Section 47A(1)(c) read with Section 46(4)(i) and Section 56. The underlying inspection found that the bank had let out portions of its properties on rent, held immovable properties beyond the maximum permissible period, failed to seek RBI approval for such holding, and did not dispose of such non-banking assets within the permissible period.