The Reserve Bank of India (RBl) has, by an order dated February 27, 2024, imposed a monetary penalty of ₹75,000/- (Rupees Seventy-Five thousand only) on Jila Sahakari Kendriya Bank Maryadit, Sehore, Madhya Pradesh (the bank) for non-compliance with the provisions of section 27 read with section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the BR Act.

The Reserve Bank of India (RBI) has, by an order dated February 27, 2024 imposed a monetary penalty of ₹5.00 lakh (Rupees Five lakh only) on Janata Co-operative Bank Limited, Malegaon, Nashik, Maharashtra (the bank) for non-compliance with RBI directions on ‘Management of Advances-UCBs’ and ‘Exposure Norms and Statutory/Other Restrictions- UCBs’. This penalty has been imposed in exercise of powers vested in RBI, conferred under provisions of section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBl) has, by an order dated February 27, 2024, imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on Pragati Mahila Nagrik Sahakari Bank Maryadit, Bhilai, Chhattisgarh (the bank) for non-compliance with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions -UCBs’ and ‘Know Your Customer (KYC) Directions, 2016. This penalty has been imposed in exercise of powers vested in RBI, conferred under provisions of section 47A (1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated March 04, 2024, imposed a monetary penalty of ₹26.60 lakh (Rupees Twenty Six lakh Sixty thousand only) on The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad (the bank), for contravention of the provisions of section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act) and for non-compliance with RBI directions on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’. This penalty has been imposed in exercise of powers vested in RBI, conferred under provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.

The Reserve Bank of India (RBI) has, by an order dated March 01, 2024, imposed a monetary penalty of ₹13.30 lakh (Rupees Thirteen Lakh and Thirty Thousand only) on Karad Urban Co-operative Bank Ltd. Karad (the bank), for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated March 13, 2024 imposed a monetary penalty of ₹1,31,80,000/- (Rupees One crore thirty one lakh eighty thousand only) on Tamilnad Mercantile Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’ and ‘Central Repository of Information on Large Credits (CRILC) - Revision in Reporting’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated March 13, 2024 imposed a monetary penalty of ₹63,60,000 (Rupees Sixty three lakh sixty thousand only) on DCB Bank Ltd. (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated March 04, 2024, imposed a monetary penalty of ₹29.55 lakh (Rupees Twenty Nine Lakh Fifty-five Thousand only) on Bandhan Bank Ltd. (the bank) for non-compliance with certain directions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has, by an order dated February 26, 2024 imposed a monetary penalty of ₹1,40,76,000 (Rupees One Crore Forty Lakh Seventy Six Thousand only) on Bank of India (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’,  ‘Customer Service in Banks’, ‘Interest Rate on Advances’, ‘Central Repository of Information on Large Credits (CRILC) - Revision in Reporting’, and ‘Membership of Credit Information Companies (CICs)’ and contravention of provisions of Credit lnformation Companies Rules, 2006 (ClC Rules). This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51(1) of the Banking Regulation Act, 1949 and section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.

The Reserve Bank of India (RBI) has, by an order dated February 21, 2024, imposed a monetary penalty of ₹13.60 lakh (Rupees Thirteen lakh sixty thousand only) on Indostar Capital Finance Limited (the company) for non-compliance with the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’ and with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2022. Based on supervisory findings of non-compliance with regulatory instructions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the instructions.  After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found inter alia that the following charges against the company were sustained warranting imposition of monetary penalty: the company  i) did not put to use a robust software to give alerts for effective identification and reporting of suspicious transactions;  ii) did not carry out periodic updation of KYC of its high risk customers, which were due for updation, as part of on-going due diligence of its customers; and iii) had delaye reporting of certain frauds above ₹1 lakh to RBI.