Shree Dhandhuka Janta Sahakari Bank Ltd

RBI imposed a monetary penalty after a statutory inspection and supervisory findings showed the bank had not complied with directions on ‘Investment by Primary (Urban) Co-operative Banks’ and ‘Know Your Customer (KYC)’. RBI sustained charges that the bank breached the ceiling on total investments held under the Held to Maturity (HTM) category, failed to adhere to prudential inter-bank (gross) and counterparty exposure limits, and failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and address the compliance lapses identified by RBI. Forward-looking implications are regulatory scrutiny and the need to strengthen investment-limit monitoring and KYC record reporting; the release does not impose any new operational restriction on customers or counterparties.