Case Brief
By an order dated August 12, 2021, RBI imposed a monetary penalty of ₹25 lakh on The Greater Bombay Co-operative Bank Ltd., Mumbai, Maharashtra. The penalty was imposed for non-compliance with RBI directions on ‘Frauds in UCBs: Changes in monitoring and reporting mechanism.’ RBI said its statutory inspection and examination of correspondence showed the bank had failed to comply with the applicable directions. After a show-cause notice, the bank’s reply, and oral submissions in personal hearing, RBI concluded the charges were substantiated and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 25.0 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra