On September 17, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹3.75 lakh on Bharat Cooperative Bank Mumbai Limited for non-compliance with RBI directions on Reporting of Unusual Cyber Security Incidents. 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 based on the bank's financial position as of March 31, 2024. The bank failed to report incidents such as unplanned downtime leading to customer service disruptions due to IT system unavailability. The action is based on regulatory compliance deficiencies and does not pronounce the validity of any transaction or agreement by the bank with its customers and is without prejudice to any other action that may be initiated by RBI against the bank. Contact: helpdocrbi.org.in, phone: 022 2266 0502. Press Release: 2025-2026/1119.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty and conducted the statutory inspection.
Bharat Cooperative Bank Mumbai Limited: The bank on which the monetary penalty was imposed.
Banking Regulation Act, 1949: The Act under which the RBI's powers to impose the penalty are conferred; specifically, Sections 47A(1)(c), 46(4)(i) and 56.
Reporting of Unusual Cyber Security Incidents Directions: RBI directions that Bharat Cooperative Bank Mumbai Limited failed to comply with.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
September 18, 2025
RBI imposes monetary penalty on Bharat Co-operative Bank (Mumbai) Limited
The Reserve Bank of India (RBI) has, by an order dated September 17, 2025,
imposed a monetary penalty of ₹3.75 lakh (Rupees Three lakh seventy five thousand
only) on Bharat Co-operative Bank (Mumbai) Limited (the bank), for non-compliance
with certain directions issued by RBI on ‘Reporting of Unusual Cyber Security
Incidents’. 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
Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its
financial position as on March 31, 2024. Based on supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the bank advising it to show cause as to why penalty should not be
imposed on it for its failure to comply with the said directions. After considering the
bank’s reply to the notice and oral submissions made during the personal hearing,
RBI found, inter alia, that the following charge against the bank was sustained,
warranting imposition of monetary penalty:
The bank did not report to RBI, incidents such as unplanned downtime which led
to significant levels of customer service disruptions due to non-availability of bank’s
IT systems.
This action is based on deficiencies 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. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Puneet Pancholy)
Press Release: 2025-2026/1119 Chief General Manager