Current Affairs

RBI imposed Penalty on Jalgaon Peoples Co-operative Bank Ltd

Current context: RBI has imposed a monetary penalty of Rs 25 lakh on the Jalgaon Peoples Co-operative Bank Ltd., Jalgaon, Maharashtra.
RBI imposed Penalty on Jalgaon Peoples Co-operative Bank Ltd 
  • The penalty has been imposed for non-compliance with directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms and Management of Advances.
  • RBI has imposed the penalty with the power vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
  • On 1st March 2018, the statutory inspection of the bank was conducted by RBI, with reference to the financial position of the Bank.
  • A notice was issued to the bank to show cause the reasons for non-compliance and why penalty should not be imposed.
  • RBI concluded for the imposition of monetary penalty after considering the bank’s reply and oral submissions made during the personal hearing.

Question: 

Q.1 Recently RBI has imposed a monetary penalty of Rs 25 lakh on Jalgaon Peoples Co-operative Bank Ltd. for non-compliance of which norm?
a. Guidelines for Licensing of New Banks in Private Sector
b. Income Recognition and Asset Classification (IRAC) norms
c. Frauds classification and reporting by commercial banks and select FIs directions 2016
d. None of the above
RBI imposed Penalty on Jalgaon Peoples Co-operative Bank Ltd RBI imposed Penalty on Jalgaon Peoples Co-operative Bank Ltd Reviewed by Neha Verma on October 31, 2019 Rating: 5

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