The Reserve Bank of India has imposed a monetary penalty on Jalgaon District Co-operative Bank in exercise of the powers vested in it.
The UCB was found violating the provisions of Section 20 A of the B.R. Act, 1949 (AACS) relating to remission of debt due to the bank by Jalgaon Starch Factory in which the then directors of the bank had interest, without obtaining prior permission from RBI.
The Reserve Bank of India had issued a show cause notice to the bank in response to which the bank submitted a written reply.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty.