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Rs 1 crore penalty imposed on J&K Bank by RBI for violation of rules

Last Updated on July 8, 2021 at 12:17 pm

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on Jammu and Kashmir Bank for violation of rules. J&K Bank is among 14 institutions that have been penalized by the central bank.

The violations include non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’ ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ and ‘Loans and Advances – Statutory and Other Restrictions.’

Scrutiny in the accounts of the companies of a Group was carried out by RBI. It was observed that the banks had failed to comply with provisions of one or more of the aforesaid directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949.