Skip to Main Content

The Jamnagar People’s Co-operative Bank Ltd., Jamnagar (Gujarat)

Co-operative bankJamnagar, Gujarat

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

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

3 Apr 2023

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Jamnagar People’s Co-operative Bank Ltd., Jamnagar (Gujarat), by order dated March 29, 2023. RBI said the bank contravened directions on income recognition, asset classification and provisioning norms for loans and advances, as well as the RBI directions on interest rate on deposits for co-operative banks. The inspection findings indicated that the bank had not identified assets as NPAs on an ongoing basis and had failed to pay interest on overdue term deposits from the date of maturity until repayment at the applicable rate. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.

Why RBI Acted

Reporting & disclosureCustomer protection

Following a statutory inspection with reference to the bank’s financial position as on March 31, 2022, RBI found that the bank had not identified assets as NPAs on an ongoing basis and had failed to pay interest to overdue term deposits from the date of maturity till repayment at the applicable savings-deposit rate or contracted rate, whichever was lower. RBI concluded these non-compliances with its directions warranted a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.

Operating Impact

The bank must absorb the financial penalty and ensure future compliance with RBI’s NPA recognition, provisioning, and overdue-deposit interest requirements. The order does not itself bar operations, but it signals regulatory scrutiny and the need for stronger compliance controls for depositors and lending operations.

Regulatory Basis

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

Action Facts

Primary Impact
Fine: Rs 1.00 L
Order Date
29 Mar 2023
Effective From
29 Mar 2023
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank