RBI imposes monetary penalty on The Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal (Gujarat)

Case Brief

RBI, by order dated December 16, 2022, imposed a monetary penalty of Rs 3 lakh on The Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal (Gujarat). The penalty was imposed under the Banking Regulation Act for contravention of RBI directions on maintenance of statutory reserves (CRR and SLR) by primary (urban) co-operative banks. RBI's inspection found that the bank had not maintained the minimum Cash Reserve Ratio, and after issuing a show-cause notice, considering the bank's reply and oral submissions, RBI held the charge substantiated and levied the penalty. RBI clarified that the action was based on regulatory compliance deficiencies and not intended to pronounce on the validity of any transaction or agreement with customers.