RBI imposes monetary penalty on The National Co-operative Bank Ltd., Mumbai, Maharashtra

Case Brief

RBI imposed a monetary penalty of Rs 1.00 lakh on The National Co-operative Bank Ltd., Mumbai, Maharashtra, by order dated August 14, 2023. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI’s inspection found non-compliance with directions on Maintenance of Deposit Accounts–Primary (Urban) Co-operative Banks. The specific lapse cited was the bank’s failure to conduct the annual review of inoperative accounts. RBI noted that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement with customers.