Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5 crore on The Mehsana Urban Co-operative Bank Ltd., Mehsana, Gujarat, by order dated November 04, 2019. RBI said a statutory inspection revealed multiple compliance deficiencies, and after considering the bank’s reply and hearing, concluded that non-compliance with directions on loans and advances to directors, relatives and related firms/concerns, as well as Master Directions on Know Your Customer (KYC), was established. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 Cr
- Entity Type
- Co-operative bank
- Location
- Mehsana, Gujarat