The Jai Bhavani Sahakari Bank Limited, Pune – Penalised
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Jai Bhavani Sahakari Bank Limited, Pune, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was levied because the bank violated RBI’s directive on directors-related loans. RBI issued a show-cause notice, considered the bank’s written reply, and concluded that the violations were substantiated and warranted imposition of the penalty.
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after concluding that the bank had violated its directive on loans related to directors. The bank had submitted a written reply to the show-cause notice, but RBI found the violations substantiated and deserving of penalty.
Severity Assessment
This is a monetary penalty of Rs 1 lakh, which falls in the lowest monetary band (severity 1).
The bank must absorb the monetary penalty and no operational restriction is described in this release. The finding relates to governance/related-party lending compliance and may have supervisory implications, but the release does not describe any additional forward-looking restriction beyond the fine.
Published as The Jai Bhavani Sahakari Bank Limited, Pune
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