Case Brief
By an order dated December 31, 2024, RBI imposed a monetary penalty of Rs 8.30 lakh on The Cosmos Co-operative Bank Ltd. The penalty followed a statutory inspection and subsequent show-cause process, after RBI found that the bank had levied foreclosure charges on floating rate term loans sanctioned to certain individual borrowers, contrary to its directions on 'Management of Advances - UCBs'. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and was without prejudice to any other action that may be initiated.
Action Snapshot
- Primary Impact
- Fine: Rs 8.30 L
- Entity Type
- Co-operative bank
- Action Type
- Monetary penalty