Document title: RBI imposes monetary penalty on Navapur Mercantile Co-operative Bank Ltd.
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/485
Date: June 18, 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated June 16, 2026, imposed a monetary penalty of ₹10,000 (Rupees Ten Thousand only) on Navapur Mercantile Co-operative Bank Ltd., Nandurbar, Maharashtra. The penalty is for contravention of the provisions of Section 35(2) read with Section 56 of the Banking Regulation Act, 1949, and is imposed under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
The statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2025. During the inspection, the bank failed to furnish the requisite information sought by the inspecting officer of the RBI. After issuing a notice to show cause, considering the bank’s written reply and oral submissions made during a personal hearing, the RBI sustained the charge of non‑compliance and imposed the monetary penalty.
The RBI clarified that this action is based solely on deficiencies in statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by the RBI against the bank.
In conclusion, the RBI has exercised its regulatory authority to enforce compliance with the Banking Regulation Act, imposing a modest monetary penalty while reserving the right to pursue further action if necessary.