The Citizens’ Co-operative Bank Ltd., Jammu

RBI placed The Citizens Co-operative Bank Ltd., Jammu under Section 35A directions. The bank faces broad operating restrictions, including a cap on depositor withdrawals.

The bank must operate under strict RBI-imposed conditions for six months unless modified or withdrawn. Depositors can withdraw only within the specified cap and subject to the direction, while the bank cannot freely lend, invest, raise liabilities, or dispose of assets without RBI approval.

• Section 35 A read with Section 56 of the Banking Regulation Act, 1949

RBI has imposed a ₹6 lakh penalty on The Citizens’ Co-operative Bank Ltd., Jammu for non-compliance with supervisory and exposure-limit directions. The violations involved fresh lending, overdrawn cash credit accounts, and excess inter-bank exposure.

The bank must bear the monetary penalty and the finding serves as a regulatory censure for its prior non-compliance. The release does not announce a new operational restriction, but it underscores that the bank’s lending and exposure practices were outside RBI directions and would remain subject to supervisory scrutiny.

• Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949

RBI imposed a ₹5 lakh penalty on The Citizens’ Co-operative Bank Limited, Jammu for failing to comply with specific supervisory directions on borrower exposure limits. The action was taken after inspection and show-cause proceedings.

The bank must absorb the financial penalty; the press release does not indicate any new operational restriction beyond the fine. The underlying supervisory concern relates to borrower exposure concentration, but the immediate forward-looking impact is limited to the monetary penalty and compliance expectations already in place.

• section 35 A
• section 36 (1) (a) read with section 56
• section 47 A (1) (c) read with section 46 (4) (i) and section 56 of the Banking Regulation Act, 1949