India, May 4 -- The Reserve Bank of India has imposed a monetary penalty of Rs 20,000 on Mogaveera Co-operative Bank Ltd. for non-compliance with prudential norms related to capital adequacy for urban co-operative banks.
The penalty, imposed through an order dated April 29, 2026, follows a statutory inspection conducted with reference to the bank's financial position as of March 31, 2025.
RBI found that the bank had refunded share capital on multiple occasions despite its Capital to Risk-Weighted Assets Ratio (CRAR) remaining below the regulatory minimum, violating prescribed norms.
The central bank clarified that the action is based on regulatory compliance deficiencies and does not impact the validity of transactions entered into by th...