The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 15.00 lakh (Rupees Fifteen Lakh only) on Solapur Janata Sahakari Bank Limited for contravention of provisions of Section 5(ccv)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act). The bye-laws of Solapur Janata Sahakari Bank allowed co-operative societies to enter into the bank as members, which was in violation of the provisions of the BR Act. Hence RBI has imposed a fine of Rs 15 lakh on the bank.
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| RBI Imposes Rs 15 lakh Penalty on Solapur Janata Sahakari Bank |
RBI Imposes ₹15 lakh Penalty on Solapur Janata Sahakari Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹15.00 lakh (Rupees Fifteen Lakh only) on Solapur Janata Sahakari Bank Limited for contravention of provisions of Section 5(ccv)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
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Section 5(ccv)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act) refers to the application of the Act to cooperative banks. Specifically, Section 56 modifies the BR Act to make it applicable, with certain exceptions and modifications, to cooperative societies carrying on banking business.
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.50 lakh on Dr. Babasaheb Ambedkar Urban Co-operative Bank Limited, Nagpur, Maharashtra.
RBI Imposes Penalty on Solapur Janata Sahakari Bank: Background
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The Solapur Janata Sahakari Bank’s bye-laws permitted admission of co-operative society as a member in the bank, in contravention of the provisions of the BR Act. Hence RBI has imposed a fine of Rs 15 lakh on the bank.
This action is based on deficiencies in statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About Solapur Janata Sahakari Bank
Solapur Janata Sahakari Bank Ltd. was established on 23rd April 1966. The bank is today considered one of the top and leading urban co-operative banks operating in the region of Western Maharashtra and Marathwada.
Solapur Janata Sahakari Bank is among the few Urban Banks who have devised need based loan schemes, keeping in view every imaginable need of an individual borrower to the large industrial / commercial enterprise.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Solapur Janata Sahakari Bank for upcoming exams
- Formation: 23rd April 1966
- Chairman: Suneel Gangadhar Pendse
- Vice-President: Milind Vishnupant Kulkarni
- Director: Gajanan Revansiddha Dharne
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