RBI imposes monetary penalty on The Citizens’ Co-operative Bank Limited, Jammu, Jammu and Kashmir

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Citizens’ Co-operative Bank Limited, Jammu, Jammu and Kashmir by order dated January 06, 2023. The penalty was for contravention of section 35A and section 36(1)(a) read with section 56 of the Banking Regulation Act, 1949, arising from the bank's failure to adhere to specific RBI directions under a Supervisory Action Framework to reduce its single and group borrower exposure limits. RBI said the violation was established after inspection, issuance of a show-cause notice, and consideration of the bank's reply and additional information.