Case Brief
What Happened
By an order dated April 29, 2026, RBI imposed a monetary penalty of Rs 20,000 on Mogaveera Co-operative Bank Ltd., Mumbai. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2025, and a show-cause notice based on supervisory findings of non-compliance with RBI directions on prudential norms for capital adequacy applicable to Primary (Urban) Co-operative Banks. RBI sustained the charge that the bank refunded share capital on multiple occasions despite its CRAR being below the regulatory minimum. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.