Jana Small Finance Bank Limited (JSFB) has announced that the Reserve Bank of India (RBI) has imposed a penalty of ₹1,00,00,000/- (Rupees one crore only) on the bank. The RBI order, dated 07th May 2025 and received by the bank on 09th May 2025, cites contravention of Section 12B(5) of the Banking Regulation Act, 1949. The violation relates to the issuance of Compulsorily Convertible Preference Shares (CCPS) in excess of 5% without necessary approvals. These CCPS were issued prior to September 2023. The penalty emanates from an RBI Adjudication Committee order. The bank stated that the monetary impact is ₹1,00,00,000/- but there is no material impact on its financial position. JSFB also noted that it does not have any outstanding Compulsorily Convertible Preference Shares since its IPO in February 2024.