Reserve Bank of India Penalizes Rajputana Mahila Urban Co-operative Bank Limited, Jaipur

Case Brief

The Reserve Bank of India imposed a monetary penalty on Rajputana Mahila Urban Co-operative Bank Limited, Jaipur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found that the bank violated its guidelines/directives on finance against properties situated in unauthorized colonies and also provided locker facility at its Extension Counter without obtaining prior RBI approval. After a show-cause notice, written reply, and personal hearing, RBI concluded that the violations were substantiated and warranted the penalty.