TestCloud
Prep • Practice • Perform
Log In

RBI Levies Monetary Penalty on Bombay Mercantile Co-operative Bank Limited and Two Other Banks.

Banking & Finance | Dated: 01 Mar 2025

In February 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 33.30 lakh on Bombay Mercantile Co-operative Bank Limited, based in Mumbai (Maharashtra), for violating certain provisions and earning income from business activities not permitted under the Banking Regulation Act, 1949.

🎯 Key Highlights:

  • - As of March 31, 2023, the RBI conducted a statutory inspection of the bank with reference to its financial position.
  • - The penalty was imposed under the powers conferred on the RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

💡 Other Important Facts:

  • (i) The RBI also imposed a monetary penalty of Rs 1 lakh each on two other co-operative banks: Business Co-operative Bank Limited (Nashik, Maharashtra) and Lasalgaon Merchant Co-operative Bank Limited (Nashik).
  • (ii) These two banks were found violating certain provisions and failing to adhere to directions issued by the RBI regarding "Income Recognition, Asset Classification, Provisioning, and Other Related Matters for Urban Co-operative Banks (UCBs)."

📚 Test Your Knowledge:

Recently, which organization imposed a monetary penalty on Bombay Mercantile Co-operative Bank Limited and two other banks?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai