Case Brief
What Happened
RBI imposed a monetary penalty of ₹5.00 lakh on Jowai Co-operative Urban Bank Limited by order dated August 10, 2020. The penalty was for contravention of RBI directions on 'Exposure Norms and Statutory/Other Restrictions-UCBs', based on inspection/scrutiny findings as of March 31, 2018. RBI said the bank failed to adhere to the applicable directions, and after the show-cause notice, reply, oral hearing, and additional submissions, it concluded the non-compliance was substantiated. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.