RBI imposes monetary penalty on Mathura Jilla Sahkari Bank Ltd, Uttar Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Mathura Jilla Sahkari Bank Ltd, Uttar Pradesh by order dated February 23, 2024. The penalty followed a statutory inspection by NABARD and a show-cause process based on supervisory findings of non-compliance with provisions of the Banking Regulation Act, 1949. RBI held that the bank failed to dispose of an immovable property not used for its own purposes within the maximum period prescribed under the BR Act, thereby sustaining the charge and warranting the penalty. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.