Case Brief
What Happened
By order dated January 14, 2025, RBI imposed a monetary penalty of Rs 3,31,80,000 on Jammu and Kashmir Bank Limited. The penalty followed a statutory inspection and supervisory evaluation that found non-compliance with RBI directions on BSBDA, KYC, and loans and advances restrictions. RBI said the bank allowed certain BSBDA holders to open savings accounts, did not identify beneficial owners for some legal-person accounts, allowed operations in certain small accounts not meeting regulatory requirements, and sanctioned a working capital demand loan to a corporation against subsidy receivables from the Government. RBI stated the action is based on deficiencies in statutory and regulatory compliance and does not pronounce on the validity of customer transactions or agreements.