Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 33.30 lakh on Bombay Mercantile Co-operative Bank Ltd., Mumbai, by order dated February 17, 2025. RBI said the penalty followed a statutory inspection and supervisory findings that the bank had contravened Section 6(2) read with Section 56 of the Banking Regulation Act, 1949 by engaging in and earning income from business not permissible under the Act. The bank was issued a show-cause notice, and RBI considered its reply and oral submissions before sustaining the charge and imposing the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.