Case Brief
What Happened
By order dated April 21, 2023, RBI imposed a monetary penalty of ₹13 lakh on Bombay Mercantile Co-operative Bank Ltd., Mumbai for contravention of section 26-A read with section 56 of the Banking Regulation Act, 1949. RBI said its statutory inspection found that the bank failed to transfer eligible amounts to the Depositor and Education and Awareness Fund (DEAF) within the prescribed period and transferred the same with delay. After considering the bank’s reply, additional submissions, and oral submissions at personal hearing, RBI concluded the contravention was substantiated and warranted penalty.