The Reserve Bank of India (RBI) has, by an order dated July 29, 2021, imposed a monetary penalty of Rs 50.35 lakh (Rupees fifty lakh and thirty-five thousand only) on The Janalaxmi Co-operative Bank Ltd., Nashik, Maharashtra.
The UCB was faulted for non-compliance with directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks’ and ‘Membership of Credit Information Companies (CICs)’.
This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.