Kokan Mercantile Co-operative Bank Ltd., Mumbai

RBI imposed a ₹2 lakh penalty on Kokan Mercantile Co-operative Bank Ltd., Mumbai. The action was for non-compliance with RBI directions on income recognition, asset classification, and provisioning for UCBs.

The bank must absorb the penalty and continue complying with RBI’s prudential directions on income recognition, asset classification, and provisioning. The order does not invalidate any customer transaction or agreement, but it underscores ongoing supervisory expectations for the bank’s compliance controls.

• Section 47 A (1) (c) read with Section 46 4) (i) and Section 56 of the Banking Regulation Act, 1949

RBI imposed a monetary penalty of Rs. 1 lakh on Kokan Mercantile Co-operative Bank Ltd., Mumbai. The action was for violating RBI’s limits on credit exposure to a single borrower or group of borrowers.

The bank must absorb the monetary penalty; no operating restriction is described in the release. The consequence is primarily financial and reputational, with no stated immediate impact on depositors or borrowers beyond the compliance finding.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)