Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on Kokan Mercantile Co-operative Bank Ltd., Mumbai, by order dated March 22, 2022. RBI found that the bank had contravened directions on Income Recognition, Asset Classification and Provisioning and Other Related Matters applicable to urban co-operative banks. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after an inspection based on the bank’s financial position as on March 31, 2019 revealed non-compliance. RBI issued a show-cause notice, considered the bank’s written reply, and concluded the charge was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra