RBI imposes monetary penalty on The Raj Laxmi Mahila Urban Co-operative Bank Ltd., Jaipur

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Raj Laxmi Mahila Urban Co-operative Bank Ltd., Jaipur, for non-compliance with specific directions issued under the Supervisory Action Framework (SAF). RBI’s inspection and subsequent proceedings found that the bank had failed to reduce its single exposure limit for fresh loans and advances by 50% of the applicable regulatory limits, as directed. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act, after considering the bank’s reply and oral submissions. RBI also clarified that the penalty is based on regulatory compliance deficiencies and does not affect the validity of customer transactions.