RBI imposes monetary penalty on The Baramulla Central Co-operative Bank Ltd., Jammu and Kashmir
Case Brief
RBI imposed a monetary penalty of ₹5.00 lakh on The Baramulla Central Co-operative Bank Ltd., Jammu and Kashmir, following a statutory inspection by NABARD and supervisory findings that the bank had not complied with RBI directions prohibiting acceptance of fresh deposits. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI sustained the charge and levied the penalty under the Banking Regulation Act, 1949.
RBI imposed a monetary penalty after supervisory inspection findings showed that The Baramulla Central Co-operative Bank Ltd., Jammu and Kashmir had accepted fresh deposits in violation of specific RBI directions prohibiting acceptance of fresh deposits. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply and oral submissions.
Severity Assessment
The action is a monetary penalty of ₹5 lakh, which falls within the lowest monetary band and carries no separate broad business restriction in this release.
The bank must bear the financial penalty and remain subject to RBI supervisory scrutiny. The release also notes that the penalty is without prejudice to any other action RBI may initiate, so additional enforcement remains possible.
Published as The Baramulla Central Co-operative Bank Ltd., Jammu and Kashmir
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