Recorded RBI impact
Fine: Rs 10,000
Monetary penalty · Fresh imposition
Published by RBI
4 Nov 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10,000 on The Jambusar People’s Co-operative Bank Ltd., Bharuch, Gujarat, for non-compliance with RBI directions on membership of Credit Information Companies by co-operative banks. Following a statutory inspection and a show-cause process, RBI concluded that the bank had failed to submit data to any of the CICs. The penalty was imposed under section 25 of the Credit Information Companies (Regulation) Act, 2005.
Why RBI Acted
RBI imposed a monetary penalty under section 25 of the Credit Information Companies (Regulation) Act, 2005 after supervisory inspection found non-compliance with RBI directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. The sustained charge was that the bank failed to submit data to any of the CICs.
Operating Impact
The bank must bear the monetary penalty and remain compliant with RBI’s CIC-related reporting requirements going forward. The action does not by itself invalidate customer transactions, but it signals supervisory scrutiny and may expose the bank to further RBI action if non-compliance continues.
Regulatory Basis
- section 25 of the Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 10,000
- Order Date
- 28 Oct 2024
- Effective From
- 28 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank