Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 crore on The Mehsana Urban Co-operative Bank Limited, Mehsana (Gujarat) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated directives/instructions/guidelines applicable to Urban Co-operative Banks, including norms relating to advances to directors and their relatives, KYC/AML compliance, and group exposure limits. After examining the bank's reply to the show-cause notice and hearing its oral submissions, RBI concluded that the violations were established and that penalty was warranted.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Co-operative bank
- Location
- Mehsana, Gujarat