MUMBAI (CU)_In March 2019, the Reserve Bank of India (RBI) conducted a statutory inspection into the financial position of the Bombay Mercantile Co-operative Bank. During the investigation it was discovered that among other things, the Mumbai-based financial service provider had been offered higher interest rates on Non-Resident External (NRE) deposits, in comparison to those offered to domestic rupee term deposits. According to the central bank, this was in violation of the 2016 RBI Directions (Co-operative Banks – Interest Rate on Deposits), as well as the specific directions issued in 2018 under the Supervisory Action Framework (SAF).
Following the discovery of the violations, the RBI had issued a notice to…
