RBI imposes monetary penalty on The Citizens’ Co-operative Bank Ltd., Jammu

Case Brief

RBI imposed a monetary penalty on The Citizens’ Co-operative Bank Ltd., Jammu after inspection findings showed non-compliance with specific RBI directions under the Supervisory Action Framework (SAF) and exposure norms/statutory restrictions applicable to urban co-operative banks. The bank had sanctioned fresh loans and advances and allowed cash credit facilities to be overdrawn, and it also breached the prudential inter-bank exposure limit and inter-bank counterparty limit. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.