RBI imposes monetary penalty on Solapur Janata Sahakari Bank Limited

Case Brief

By an order dated July 07, 2025, RBI imposed a monetary penalty of ₹15.00 lakh on Solapur Janata Sahakari Bank Limited 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 with reference to the bank’s financial position as on March 31, 2024, a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI found that the bank’s bye-laws permitted admission of a co-operative society as a member, which was held to be in contravention of Section 5(ccv)(iii) read with Section 56 of the BR Act.