RBI imposes monetary penalty on The Janalaxmi Co-operative Bank Limited, Nashik

Case Brief

By an order dated March 12, 2024, RBI imposed a monetary penalty of Rs 59.90 lakh on The Janalaxmi Co-operative Bank Limited, Nashik. The penalty was imposed for non-compliance with RBI directions on constitution of the Board of Management in UCBs, exposure norms and statutory/other restrictions for UCBs, and a specific order under the Supervisory Action Framework for Primary (Urban) Co-operative Banks. RBI said the bank failed to constitute a Board of Management within the extended timeline, sanctioned credit facilities to nominal members beyond prescribed limits, and opened/renewed term deposits at rates higher than SBI's for the same tenor. The penalty was imposed under the Banking Regulation Act after supervisory inspection and show-cause proceedings.