RBI imposes monetary penalty on Mogaveera Co-operative Bank Limited, Mumbai
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹12 lakh on Mogaveera Co-operative Bank Limited, Mumbai, by order dated June 21, 2021. The penalty was imposed for contravention of section 26-A read with section 56 of the Banking Regulation Act and for failure to comply with RBI directions on Maintenance of Deposit Accounts and Know Your Customer (KYC) Directions, based on inspection findings as of March 31, 2019.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 after inspection found the bank had not fully transferred unclaimed deposits to the Depositor Education and Awareness Fund, had not conducted annual review of inoperative accounts, had no system for periodic review of risk categorization of accounts, and had issues with UCIC mapping (multiple UCICs for multiple accounts and multiple customers sharing the same UCIC). The RBI concluded these lapses constituted contravention of the Act and the directions issued under it.
Severity Assessment
A monetary penalty of ₹12 lakh falls in severity band 3, and there is no broader operational restriction.
The bank must absorb the financial penalty and address the compliance gaps identified by RBI, including unclaimed-deposit transfers, review of inoperative accounts, periodic risk-categorization review, and UCIC reconciliation. The action does not itself invalidate customer transactions, but it signals heightened compliance expectations going forward.
Published as Mogaveera Co-operative Bank Limited, Mumbai
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