RBI imposes monetary penalty on Janata Co-operative Bank Limited, Malegaon, Nashik, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Janata Co-operative Bank Limited, Malegaon, Nashik, Maharashtra, following supervisory findings from a statutory inspection with reference to the bank’s financial position as on March 31, 2022. RBI said the bank failed to comply with its directions on Management of Advances-UCBs and Exposure Norms and Statutory/Other Restrictions-UCBs. The sustained violations were that the bank sanctioned gold loans beyond the prescribed regulatory limit under the bullet repayment scheme and sanctioned loans to nominal members beyond the prescribed limit. The penalty was imposed under the Banking Regulation Act, 1949.