Banking and Credit
The RBI conducted a statutory inspection of Jai Bhawani Sahakari Bank Ltd. with reference to its financial position as on 31 March 2025. The inspection identified two specific compliance failures: the bank did not report credit information of its borrowers to any Credit Information Company, and it failed to review the risk categorisation of accounts at the prescribed periodicity. These deficiencies relate directly to the bank’s credit risk management and KYC obligations.
Regulatory and Policy Measures
Pursuant to Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005, the RBI issued a show‑cause notice to the bank. After considering the bank’s written reply, additional submissions, and oral arguments presented during a personal hearing, the RBI sustained the charges and imposed a monetary penalty of ₹2.03 lakh (Rupees Two Lakh and Three Thousand only). The penalty is imposed without prejudice to any further action the RBI may take against the bank.
The press release is signed by Brij Raj, Chief General Manager of the RBI, indicating the official nature of the enforcement action.
This regulatory action underscores the RBI’s emphasis on strict adherence to credit information reporting and KYC norms by cooperative banks.