RBI imposes penalty of Rs 59.90 lakh on Janalaxmi Cooperative Bank, Nashik

The Reserve Bank of India (RBI) has imposed a penalty of Rs 59.90 lakh on Janalaxmi Cooperative Bank, based in Nashik, for not complying with regulations. The RBI discovered that the bank did not form a board of management within the extended timeframe provided by the RBI. Additionally, the bank granted credit facilities to its nominal members exceeding the prescribed limit and opened/renewed term deposits at interest rates higher than those offered by the State Bank of India for the same duration.

The bank received a show cause notice and, following that, the penalty was imposed under the sections of the Banking Regulation Act, according to an official statement.

The central bank has imposed a penalty of Rs 28.30 lakh on Solapur Janata Sahakari Bank for appointing a board of management member who did not meet the 'fit and proper' criteria. The bank also failed to reconstitute the panel within the specified time and contravened the Supervisory Action Framework by sanctioning fresh loans with risk weights exceeding 100 per cent in FY22.

Additionally, a fine of Rs 50,000 was imposed on Chikkamagaluru District Cooperative Central Bank, Karnataka, for delays in reporting frauds to the National Bank for Agriculture and Rural Development.

The RBI has imposed a monetary penalty of Rs 25,000 on The Dindigul Urban Co-operative Bank in Tamil Nadu for sanctioning loans to nominal members exceeding the prescribed limit.