RBI imposes Monetary Penalty of Rs.15 Lakh on New India Co-operative Bank Limited:

RBI imposes Monetary Penalty of Rs.15 Lakh on New India Co-operative Bank Limited The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.15.00 lakh on New India Co-operative Bank Limited, Mumbai (the bank) for non-compliance with the directions issued by RBI on ‘Donations/ Contributions for public/charitable purposes out of profits of UCBs’ by an order dated January 17, 2024. The RBI's statutory inspection of the bank with reference to its financial position as of March 31, 2021, as well as an examination of the Risk Assessment Report, Inspection Report, and all correspondence related thereto, revealed, among other things, that the bank had exceeded the prescribed donation ceiling during the financial year 2020-21. As a result, a notice was sent to the bank instructing it to show cause why a penalty should not be levied for non-compliance with the RBI guidelines, as indicated therein. After considering the bank's response to the notice, additional submissions, and oral submissions made during the personal hearing, the RBI concluded that the charge of non-compliance with the aforementioned RBI directions was supported and warranted the imposition of a monetary penalty on the bank. This penalty has been imposed in the exercise of powers conferred on RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. This action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.