The Reserve Bank of India has imposed a monetary penalty of Rs 3.30 lakh on Mumbai-based Janakalyan Sahakari Bank Limited for not following its lending rules properly. The action comes after the central bank found that the cooperative bank had violated norms related to how much it can lend to a group of connected borrowers.
The issue came to light during RBI’s inspection of the bank’s financial position as of March 31, 2025. According to the regulator, the bank exceeded the prescribed exposure limits in some cases, which are meant to reduce risk and prevent over-concentration of loans.
RBI had issued a notice to the bank asking for an explanation. After reviewing the bank’s response and hearing its submissions, the regulator concluded that the violation was valid and warranted a penalty.
The central bank clarified that this penalty is strictly due to regulatory non-compliance and does not question any specific transaction between the bank and its customers. It also added that this action does not prevent RBI from taking further steps if required.