Reserve Bank of India imposes monetary penalty on The Mehkar Urban Co-operative Bank Ltd., Mehkar, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Mehkar Urban Co-operative Bank Ltd., Mehkar, by order dated April 16, 2021. RBI found that the bank had contravened/non-complied with directions issued to urban co-operative banks on Board of Directors and Exposure Norms and Statutory/Other Restrictions, based on inspection findings as of March 31, 2019. After issuing a show-cause notice and considering the bank’s written reply and oral submissions, RBI concluded that the charge was substantiated and imposed the penalty under the Banking Regulation Act, 1949.