RBI imposes monetary penalty on The Mumbai District Central Co-operative Bank Ltd., Maharashtra
Case Brief
RBI, by order dated November 06, 2025, imposed a monetary penalty of ₹2 lakh on The Mumbai District Central Co-operative Bank Ltd., Maharashtra. The action followed a statutory inspection by NABARD and a show-cause process, after which RBI concluded that the bank had sanctioned certain director-related loans, in contravention of Section 20 of the Banking Regulation Act, 1949.
Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024, RBI issued a show-cause notice for contravention of statutory provisions. After considering the bank’s reply and oral submissions, RBI held that the charge was sustained: the bank had sanctioned certain director-related loans, contrary to Section 20 of the Banking Regulation Act, 1949. RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Severity Assessment
This is a monetary penalty of ₹2 lakh, which falls within the lowest monetary severity band, with no additional operational restriction.
The bank must bear the monetary penalty, but the release does not impose a business restriction or suspension. The action serves as a regulatory reprimand for deficient statutory compliance and signals possible further action, though the press release states the penalty is without prejudice to any other action RBI may initiate.
Published as The Mumbai District Central Co-operative Bank Ltd., Maharashtra
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
© 2026 RegOversight by OddVector