Reserve Bank of India imposes monetary penalty on The Baramulla Central Co-operative Bank Limited, Jammu and Kashmir

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Baramulla Central Co-operative Bank Limited, Jammu and Kashmir. The penalty was issued for contravention of Section 6 and Section 9 read with Section 56 of the Banking Regulation Act, 1949, and for violation of RBI directions prohibiting acceptance of fresh deposits. RBI said the action was based on regulatory-compliance deficiencies and arose from a NABARD statutory inspection that found the bank had let out its premises on rent, retained immovable properties beyond the permissible period without seeking RBI extension, and accepted fresh deposits contrary to specific RBI directions. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.