Sher Nagrik Sahakari Bank Ltd., Jabalpur (Madhya Pradesh)

RBI cancelled the licence of Sher Nagrik Sahakari Bank Ltd., Jabalpur (Madhya Pradesh). The bank was also barred from carrying on banking business and handling public deposits.

The bank cannot conduct banking business in India or accept/repay public deposits. Its status changes from co-operative bank to a non-banking entity, affecting customers, depositors, and counterparties with banking relationships.

• Section 36A(2) of Banking Regulation Act, 1949 (AACS)
• Section 5(cci) of the Act read with Section 56 of the Act
• Section 22 of the Act read with Section 56 of the Act

+1 more in the case brief

RBI imposed a penalty of Rs 5 lakh on Sher Nagrik Sahakari Bank Ltd., Jabalpur. The penalty was for violations of KYC/AML norms, interest-charging rules, and RBI operational instructions.

The bank must absorb the monetary penalty; the release does not state any additional operational restriction. The action signals RBI's finding of compliance lapses in KYC/AML, lending interest practices, and adherence to operational instructions, but it does not describe a suspension, cancellation, or other forward-looking ban.

• Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949
• Section 36(1) of the Banking Regulation Act, 1949 (AACS)