Case Brief
By an order dated February 6, 2024, RBI imposed a monetary penalty of ₹63.30 lakh on Bombay Mercantile Co-operative Bank Ltd. The penalty was based on deficiencies found in statutory inspections with reference to the bank's financial position as on March 31, 2021 and March 31, 2022. RBI found that the bank exceeded prescribed lending ceilings for nominal members, exceeded the ceiling for gold loans with bullet repayment, and recovered charges for activation of inoperative accounts. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, for non-compliance with RBI directions.
Action Snapshot
- Primary Impact
- Fine: Rs 63.3 L
- Entity Type
- Co-operative bank
- Action Type
- Monetary penalty