RBI imposes monetary penalty on The Jalna People’s Cooperative Bank Ltd., Jalna, Maharashtra

Case Brief

By an order dated March 25, 2025, RBI imposed a monetary penalty on The Jalna People’s Cooperative Bank Ltd., Jalna, Maharashtra under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed a statutory inspection and show-cause process, and RBI found that the bank had sanctioned gold loans under the bullet repayment scheme beyond the prescribed regulatory limit, in breach of RBI Directions on ‘Gold Loan – Bullet Repayment – Primary (Urban) Co-operative Banks (UCBs)’. RBI clarified that the penalty is for regulatory non-compliance and does not pronounce on the validity of customer transactions, and it is without prejudice to any other action that may be initiated.