RBI imposes Rs 50.35 lakh penalty on Janalaxmi Co-operative Bank

Reserve Bank of India on Monday said it has imposed a penalty of Rs 50.35 lakh on Janalaxmi Co-operative Bank, Nashik for non-compliance with certain regulatory requirements.

The penalty on Janalaxmi Co-operative Bank has been imposed 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)'.

A statutory inspection conducted by RBI with reference to the bank's financial position as on March 31, 2019 and the inspection report pertaining thereto, and examination of all related correspondence revealed non-compliance with the directions, it said in a statement.

RBI has also imposed a penalty of Rs 3 lakh on the Noida Commercial Co-operative Bank, Ghaziabad.

In a separate statement, the central bank said the inspection report of the co-operative bank based on its financial position as on March 31, 2019 revealed that it failed to adhere to the provisions related to director-related loans and opening of new place of business.

However, RBI said the penalities are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the two lenders with their customers.