RBI imposes monetary penalty on NKGSB Co-operative Bank Limited, Mumbai

Case Brief

RBI imposed a monetary penalty of ₹15.00 lakh on NKGSB Co-operative Bank Limited, Mumbai, by order dated March 25, 2025. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection with reference to the bank’s financial position as on March 31, 2023. RBI said supervisory findings and related correspondence showed non-compliance with its directions on ‘Management of Advances - UCBs’; after considering the bank’s reply, oral submissions and additional submissions, RBI sustained the charge that the bank had sanctioned/granted certain loans for purchase of gold. The release states the penalty is without prejudice to any other action RBI may take.