**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹15 lakh on Bharat Co-operative Bank (Mumbai) Limited for non-compliance with RBI directions regarding ‘Interest Rate on Deposits’. This penalty was imposed on February 6, 2026, following a statutory inspection of the bank's financial position as of March 31, 2025. The penalty is under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹15 lakh on Bharat Co-operative Bank (Mumbai) Limited.
* The penalty is for non-compliance with RBI directions on ‘Interest Rate on Deposits’.
* The order was issued on February 6, 2026.
* **Basis for Penalty:**
* The statutory inspection of the bank's financial position as of March 31, 2025, revealed non-compliance with RBI directions.
* A notice was issued to the bank, and their reply and oral submissions were considered.
* The bank did not pay any interest on certain eligible term deposits, which were withdrawn prematurely.
* **Nature of Action:**
* The action is based on deficiencies in regulatory compliance.
* It is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Bharat Co-operative Bank (Mumbai) Limited**
* **Impact**
* The bank is subject to a monetary penalty of ₹15 lakh.
* The bank's regulatory compliance is under scrutiny by RBI.
* The bank's reputation could be affected.
* **Action Required**
* The bank must pay the monetary penalty.
* The bank needs to improve compliance with RBI directions on ‘Interest Rate on Deposits’.
* The bank may face further actions from RBI.
**Bank's Customers**
* **Impact**
* The penalty is not intended to affect the validity of transactions or agreements between the bank and its customers.
* **Action Required**
* No specific action is required from the bank's customers, as the penalty is related to regulatory compliance.
Key Entities Referenced
Reserve Bank of India (RBI): Regulatory body that imposed a monetary penalty.
Bharat Co-operative Bank (Mumbai) Limited: Bank on which monetary penalty was imposed for non-compliance.
Banking Regulation Act, 1949: Law under which the penalty was imposed, specifically Sections 47A(1)(c), 46(4)(i) and 56.
Interest Rate on Deposits: RBI directions that Bharat Co-operative Bank (Mumbai) Limited failed to comply with.
Mumbai: Location of Bharat Co-operative Bank (Mumbai) Limited
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
February 09, 2026
RBI imposes monetary penalty on Bharat Co-operative Bank (Mumbai) Limited
The Reserve Bank of India (RBI) has, by an order dated February 6, 2026,
imposed a monetary penalty of ₹15 lakh (Rupees Fifteen Lakh only) on Bharat Co-
operative Bank (Mumbai) Limited (the bank), for non-compliance with certain
directions issued by RBI on ‘Interest Rate on Deposits’. 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, 2025. 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 pay any interest on certain eligible term deposits, which were
withdrawn prematurely.
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.
(Brij Raj)
Press Release: 2025-2026/2075 Chief General Manager