Case Brief
The Reserve Bank of India penalised The Mahila Vikas Co-operative Bank Ltd., Ahmedabad (Gujarat) (Non-scheduled UCB) by imposing a monetary penalty of Rs 10.00 lakh under Section 47A(1) read with Section 46(4) of the Banking Regulation Act, 1949, as applicable to co-operative societies. RBI said the bank violated instructions/guidelines relating to the ceiling on unsecured advances, loans and advances to directors, relatives and firms/concerns in which they are interested, and KYC/AML guidelines. After a show cause notice, the bank submitted a written reply and personal submissions, but RBI concluded the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat