RBI imposes monetary penalty on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh

Case Brief

By an order dated March 31, 2024, RBI imposed a monetary penalty of ₹3.50 lakh on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh. The action followed a NABARD statutory inspection and supervisory findings that the bank had failed to comply with NABARD directions on 'Frauds-Guidelines for Classification, Reporting and Monitoring', specifically involving delay in reporting frauds. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.