RBI imposes monetary penalty on The Jammu Central Co-operative Bank Ltd., Jammu and Kashmir

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on The Jammu Central Co-operative Bank Ltd., Jammu and Kashmir, by order dated May 06, 2025. The penalty followed a statutory inspection by NABARD as of March 31, 2023 and a show-cause process in which RBI considered the bank’s reply and oral submissions. RBI found that the bank had accepted fresh deposits in savings bank accounts in violation of specific directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.