On November 10, 2025, the Reserve Bank of India (RBI) released a statement announcing a monetary penalty of ₹2 lakh imposed on The Mumbai District Central Co-operative Bank Ltd., Maharashtra. This penalty, issued on November 6, 2025, is for contravention of provisions of Section 20 of the Banking Regulation Act, 1949 (BR Act), under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. The statutory inspection of the bank was conducted by National Bank for Agriculture and Rural Development (NABARD) on March 31, 2024. The RBI found that the bank had sanctioned certain director related loans. A notice was issued to the bank, and after considering the bank's reply and oral submissions, the RBI sustained the charge. The action is based on deficiencies in statutory compliance and is without prejudice to any other action that may be initiated by RBI against the bank. The press release number is 2025-2026/1478. Contact information for the Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001; Phone: 022 - 2266 0502; Website: www.rbi.org.in; E-mail: helpdoc@rbi.org.in. Brij Raj, Chief General Manager.
Key Entities Referenced
Banking Regulation Act, 1949 (BR Act): The Act under which the penalty was imposed for contravention of its provisions.
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
The Mumbai District Central Co-operative Bank Ltd., Maharashtra: The bank on which the monetary penalty was imposed.
National Bank for Agriculture and Rural Development (NABARD): Conducted the statutory inspection of the bank.
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
November 10, 2025
RBI imposes monetary penalty on The Mumbai District Central Co-operative
Bank Ltd., Maharashtra
The Reserve Bank of India (RBI) has, by an order dated November 06, 2025,
imposed a monetary penalty of ₹2 lakh (Rupees Two Lakh only) on The Mumbai
District Central Co-operative Bank Ltd., Maharashtra (the bank), for contravention of
provisions of Section 20 of the Banking Regulation Act, 1949 (BR Act). 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 BR Act.
The statutory inspection of the bank was conducted by National Bank for
Agriculture and Rural Development (NABARD), with reference to its financial position
as on March 31, 2024. Based on supervisory findings of contravention of statutory
provisions 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 provisions. 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 had sanctioned certain director related loans.
This action is based on deficiencies in statutory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered by the bank with
its customers. Further, imposition of monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1478 Chief General Manager