India, May 12 -- The Reserve Bank of India (RBI) has, by an order dated May 07, 2025, imposed a monetary penalty of Rs 1.00 crore (Rupees One Crore only) on Jana Small Finance Bank Limited (the bank) for contravention of provision of Section 12B(5) of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the BR Act.
The bank had raised paid-up share capital through issue / allotment of Compulsory Convertible Preference Shares (CCPS) to certain persons. This was examined vis-à-vis the requirement under Section 12B(5) of the BR Act and a notice was issued to the bank advising it to show cause as to why pena...