RBI imposed Monetary Penalty on Co-operative Bank; Check Reason:

RBI imposed Monetary Penalty on Co-operative Bank; Check Reason The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.13 lakh on Bombay Mercantile Co-operative Bank Ltd., Mumbai (the bank) for contravention of the provisions of section 26-A read with section 56 of the Banking Regulation Act, 1949 (BR Act), by an order dated April 21, 2023. This penalty was issued in accordance with RBI's authority granted by sections 47 A (1) (c), 46 (4) (i), and 56 of the BR Act. This action is based on a failure to comply with regulatory requirements and is not intended to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients. The statutory inspection of the bank conducted by the RBI with reference to its financial position as of March 31, 2020, and examination of the Risk Assessment Report and all related correspondence pertaining to the same, revealed, among other things, a violation of the aforementioned provisions of the BR Act to the extent that the bank failed to transfer eligible amount to Depositor and Education and Awareness Fund (DEAF) within the prescribed period and transferred the same with delay. In addition, a notice was given to the bank instructing it to show cause why a penalty should not be levied for violating the terms of the BR Act, as indicated therein. After reviewing the bank's response to the notice, additional submissions made by it, and oral submissions made during the personal hearing, the RBI determined that the charge of violation of the provisions of Section 26-A of the BR Act was substantiated and warranted the imposition of monetary penalty.