The Reserve Bank of India has imposed a monetary penalty of Rs 15 lakh on Bharat Co-operative Bank (Mumbai) Limited for non-compliance with RBI directions on interest rates on deposits, according to an order dated February 6, 2026. The penalty was levied under the provisions of the Banking Regulation Act, 1949.

The action follows a statutory inspection conducted with reference to the bank’s financial position as on March 31, 2025. Based on supervisory findings and related correspondence, RBI issued a show-cause notice to the bank. After considering the bank’s written reply and oral submissions during a personal hearing, the regulator found the charge to be sustained.

RBI observed that the bank did not pay interest on certain eligible term deposits that were withdrawn prematurely, warranting the imposition of the penalty.

The central bank clarified that the action is based on regulatory compliance deficiencies and does not comment on the validity of any transaction or agreement entered into by the bank with its customers. The penalty is without prejudice to any other action that may be initiated by RBI.