RBI Imposes ₹3.30 Lakh Penalty on Janakalyan Sahakari Bank for Group Borrower Exposure Violations
Summary
RBI imposed a monetary penalty of ₹3.30 lakh on Janakalyan Sahakari Bank Limited, Mumbai for non-compliance with directions on 'Exposure Ceiling to Group Borrowers'. The breach was identified through a statutory inspection with reference to the bank's financial position as on March 31, 2025. After issuing a show cause notice and conducting a personal hearing, RBI determined that the bank had breached prudential exposure limits prescribed for group borrowers in certain instances, warranting the imposition of the penalty.
“The Reserve Bank of India (RBI) has, by an order dated April 24, 2026, imposed a monetary penalty of ₹3.30 lakh (Rupees Three Lakh Thirty Thousand only) on Janakalyan Sahakari Bank Limited, Mumbai (the bank), for non-compliance with certain directions issued by RBI on 'Exposure Ceiling to Group Borrowers'.”
Co-operative banks and other RBI-supervised lenders with group borrower exposures should audit their concentration risk limits against current prudential norms. The enforcement action confirms that exposure ceiling violations attract monetary penalties even for first-instance breaches, and RBI reserves the right to initiate additional actions.
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What changed
RBI imposed a monetary penalty of ₹3.30 lakh on Janakalyan Sahakari Bank Limited, Mumbai for non-compliance with directions on 'Exposure Ceiling to Group Borrowers' under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The violation was identified during a statutory inspection conducted with reference to the bank's financial position as on March 31, 2025. The bank was issued a show cause notice, submitted a written reply, and made oral submissions during a personal hearing before the penalty was imposed.
Co-operative banks and other lenders supervised by RBI should review their group borrower exposure limits and ensure compliance with prudential norms on concentration risk. The penalty action is stated to be without prejudice to any other action that RBI may initiate against the bank, and does not affect the validity of transactions with the bank's customers.
Penalties
Monetary penalty of ₹3.30 lakh (Rupees Three Lakh Thirty Thousand only)
Archived snapshot
Apr 28, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Releases
| () | |
| Date : Apr 27, 2026 | |
| RBI imposes monetary penalty on Janakalyan Sahakari Bank Limited, Mumbai | |
| | The Reserve Bank of India (RBI) has, by an order dated April 24, 2026, imposed a monetary penalty of ₹3.30 lakh (Rupees Three Lakh Thirty Thousand only) on Janakalyan Sahakari Bank Limited, Mumbai (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Ceiling to Group Borrowers’. 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 Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had breached prudential exposure limit prescribed for group borrowers in certain instances.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/151 | | The Reserve Bank of India (RBI) has, by an order dated April 24, 2026, imposed a monetary penalty of ₹3.30 lakh (Rupees Three Lakh Thirty Thousand only) on Janakalyan Sahakari Bank Limited, Mumbai (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Ceiling to Group Borrowers’. 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 Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had breached prudential exposure limit prescribed for group borrowers in certain instances.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/151 |
| The Reserve Bank of India (RBI) has, by an order dated April 24, 2026, imposed a monetary penalty of ₹3.30 lakh (Rupees Three Lakh Thirty Thousand only) on Janakalyan Sahakari Bank Limited, Mumbai (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Ceiling to Group Borrowers’. 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 Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had breached prudential exposure limit prescribed for group borrowers in certain instances.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/151 | |
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