The Municipal Co-operative Bank Ltd., Mumbai, Maharashtra

RBI imposed a ₹1 lakh penalty on The Municipal Co-operative Bank Ltd., Mumbai for violating deposit-account maintenance directions. The bank charged fixed penal fees for minimum-balance shortfalls instead of proportionate charges.

The bank must bear the monetary penalty and remain compliant with RBI directions on deposit account maintenance going forward. The order does not itself restrict operations, but it reinforces expectations around how minimum-balance shortfall charges are levied on customers.

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

RBI imposed a ₹2 lakh penalty on Municipal Co-operative Bank Limited, Mumbai for non-compliance with directions on maintenance of deposit accounts. The bank had failed to conduct annual review of inoperative accounts, with fraud also noted in those accounts.

The bank must absorb the penalty and comply more strictly with RBI’s directions on deposit-account maintenance, including proper review of inoperative accounts. The action does not itself impose a new operating ban, but it signals regulatory scrutiny over controls affecting depositors and account administration.

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