Srinagar, Jan 25: The Reserve Bank of India (RBI) has imposed a hefty penalty of Rs 3.31 crore on Jammu and Kashmir Bank for failing to comply with regulatory guidelines.
The violations involve lapses in financial inclusion norms, including issues related to the Basic Savings Bank Deposit Account (BSBDA) scheme, Know Your Customer (KYC) requirements, and breaches of statutory restrictions on loans and advances.
In a statement, the RBI highlighted that the penalty was based on deficiencies identified in the bank’s adherence to statutory and regulatory frameworks. However, the central bank clarified that the action is purely regulatory and does not question the validity of any transactions or agreements made by the bank with its customers.
This penalty underscores the RBI’s commitment to enforcing compliance with financial regulations to ensure the stability and integrity of the banking sector.
