RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.5 lakh on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh, for non-compliance with directions issued by National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’.

Monetary Penalty

The penalty was imposed based on the findings of a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2021. The inspection revealed that the bank had delayed in reporting frauds.

This action is in violation of NABARD’s directions on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’.

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The RBI has clarified that this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

This is not the first time that RBI has imposed a penalty on a cooperative bank for non-compliance with its directions. In recent months, RBI has imposed penalties on several other cooperative banks for similar violations.

This highlights the importance of cooperative banks adhering to RBI’s directions and maintaining high standards of corporate governance.

Source: Reserve Bank of India – Press Releases