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Jalore Nagrik Sahakari Bank Limited, Jalore

Co-operative bankJalore, Rajasthan

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 5.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

5 Jun 2017

Case Brief

The Reserve Bank of India imposed a monetary penalty on Jalore Nagrik Sahakari Bank Limited, Jalore under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions/guidelines by breaching prudential interbank single and gross exposure limits and by giving donations exceeding the prescribed limit. After issuing a show-cause notice, considering the bank's written reply and personal submission, RBI concluded that the violations were substantiated and warranted penalty.

Why RBI Acted

Capital & exposure normsOther

The Reserve Bank of India imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have violated RBI instructions/guidelines by breaching prudential interbank single and gross exposure limits and by giving donations exceeding the prescribed limit. RBI issued a show-cause notice, considered the bank's written reply and personal submission, and concluded that the violations were substantiated.

Operating Impact

The bank must bear the monetary penalty of ₹5 lakh; the order does not describe any operational restriction or suspension. The action is backward-looking and primarily affects the bank's compliance record, with no stated direct restriction on depositors or customers.

Regulatory Basis

  • Section 47 A (1) (c) read with 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

Action Facts

Primary Impact
Fine: Rs 5.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank