Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Bombay Mercantile Co-operative Bank Ltd., Mumbai, Maharashtra under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank had violated group exposure norms by sanctioning 21 loans aggregating Rs 96.20 crore to the Shah group of companies between November 17, 2008 and July 18, 2009, whereas the permitted ceiling was Rs 14.11 crore. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra