RBI imposes monetary penalty on The Jamnagar People’s Co-operative Bank Ltd., Jamnagar (Gujarat)

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Jamnagar People’s Co-operative Bank Ltd., Jamnagar (Gujarat), by order dated March 29, 2023. RBI said the bank contravened directions on income recognition, asset classification and provisioning norms for loans and advances, as well as the RBI directions on interest rate on deposits for co-operative banks. The inspection findings indicated that the bank had not identified assets as NPAs on an ongoing basis and had failed to pay interest on overdue term deposits from the date of maturity until repayment at the applicable rate. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.