Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2 lakh on The Mehmadabad Urban Peoples Co-operative Bank Ltd., Mehmadabad by order dated September 11, 2019. RBI said the bank failed to comply with directions on sanction of loans and advances to directors and on KYC norms / AML standards, based on a scrutiny of the bank’s books following complaints. After issuing a notice, considering the bank’s reply, and hearing its oral and additional submissions, RBI concluded that the contraventions were sustained and merited penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Mehmadabad