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RBI Imposes Penalties on J&K Bank, Bank of India, and Canara Bank for Regulatory Non-Compliance.

Banking & Finance | Dated: 29 Jan 2025

In January 2025, the Reserve Bank of India (RBI) imposed penalties on three major banks for regulatory non-compliance: Jammu and Kashmir Bank Limited (J&K Bank), Bank of India Limited (BOI), and Canara Bank Limited.

🎯 Key Highlights:

  • - J&K Bank, based in Srinagar, Jammu & Kashmir, was fined Rs 3.31 crore for violations related to financial inclusion, including issues with Basic Savings Bank Deposit Account (BSBDA) norms, Know Your Customer (KYC) compliance, and loan and advance restrictions.

💡 Other Important Facts:

  • (i) BOI, based in Mumbai, Maharashtra, was penalized Rs 1 crore for non-compliance with specific provisions of the Banking Regulation Act, 1949.
  • (ii) Canara Bank, based in Bengaluru, Karnataka, received a penalty of Rs 1.63 crore for deficiencies in priority sector lending, deposit interest rate regulations, and financial inclusion measures, particularly concerning BSBDA.

📚 Test Your Knowledge:

Which organization recently imposed penalties on J&K Bank, Bank of India, and Canara Bank for regulatory non-compliance?

Correct Answer: RBI

🚀 Quick Recap: