RBI imposes monetary penalty on Janata Sahakari Bank Limited, Pune

Case Brief

By an order dated January 07, 2025, RBI imposed a monetary penalty of Rs 17.50 lakh on Janata Sahakari Bank Limited, Pune. The penalty was for non-compliance with RBI directions on income recognition, asset classification, provisioning and other related matters for UCBs, and on maintenance of deposit accounts for primary urban co-operative banks. RBI said the bank failed to classify certain borrowers’ loan accounts as NPAs and levied penal charges on savings bank accounts for non-maintenance of minimum balance on a flat-rate basis instead of charging proportionately to the shortfall. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.