Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Muslim Co-operative Bank Ltd., Pune, Maharashtra, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated its instructions by making donations above the prescribed ceiling of 1% of the bank's published profits for the previous year. The excess donations occurred on five occasions between August 1, 2005 and July 27, 2009, with donation levels ranging from 13.40% to 18.20% of published profits. After a show-cause notice and the bank's reply, RBI held the violations substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra