RBI imposes Rs1lakh penalty on Muslim Co-op Bank of Pune

The Reserve Bank of India (RBI) on Tuesday said that it has imposed a monetary penalty of Rs1lakh on The Muslim Co- operative Bank of Pune following violation of certain instructions, it said in a press release issued in Mumbai.

The bank had violated RBI instructions by making donations over and above the prescribed limit of 1% of the published profits of the bank for the previous year.

The bank had violated the above instruction on five occasions between August 1, 2005 and July 27, 2009, and the percentage of donations ranged between 13.40% and 18.20% of the published profits of the previous year, the release said.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply.

After considering the facts of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, it said.