Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹15.00 lakh on New India Co-operative Bank Limited, Mumbai. RBI said the bank violated directions on donations/contributions for public/charitable purposes out of profits of urban co-operative banks, and its inspection found that the bank had breached the prescribed ceiling on donations during FY 2020-21. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI considered the bank's reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 15.0 L
- Entity Type
- Co-operative bank
- Location
- Mumbai
- Order Date