RBI imposes monetary penalty of Rs 0.5 crore on Jammu & Kashmir Bank
6th Aug 2019

The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 0.5 crore on Jammu & Kashmir Bank for non-compliance with certain provisions of ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

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 their customers.

Jammu & Kashmir Bank is engaged in the banking business. The company offers a range of products and services, such as loans, insurance, tax products/planning, savings and deposits, cards, mutual funds and non-resident banking.