The Reserve Bank of India imposed a monetary penalty on three cooperative banks of Maharashtra and a heavy fine has been imposed on the Bombay Mercantile Cooperative Bank. The other two banks are Lasalgaon Merchants Cooperative Bank and Business Cooperative Bank.
The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 33.30 lakh on Bombay Mercantile Co-operative Bank Ltd., Mumbai (the bank), for contravention of the provisions of Section 6(2) read with Section 56 of The Banking Regulation Act, 1949 (BR Act).
A monetary penalty of Rs 1.00 lakh has been imposed on the Lasalgaon Merchants Co-operative Bank Ltd., Nashik, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.
RBI imposed a monetary penalty of Rs 1.00 lakh on the Business Co-operative Bank Ltd., Nashik, Maharashtra (the bank) for contravention of the provisions of Section 26A read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.