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

Case Brief

By an order dated March 12, 2025, RBI imposed a monetary penalty of Rs 1 lakh on Jogindra Central Co-operative Bank Ltd., Himachal Pradesh. The penalty followed a statutory inspection and subsequent show-cause process in which RBI found that the bank had sanctioned and renewed director-related loans in contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act and clarified that it does not pronounce on the validity of the underlying transactions.