Case Brief
RBI, by an order dated July 20, 2021, imposed a monetary penalty of ₹1.00 lakh on Melur Co-operative Urban Bank Ltd., Melur, Madurai District, Tamil Nadu, for contravention of and non-compliance with certain provisions of RBI directions contained in the Master Circular on Board of Directors – UCBs dated July 1, 2015. The bank’s statutory returns for the period ended March 2020 revealed the non-compliance. After issuing a notice and considering the bank’s written reply and oral submissions, RBI held the charges to be substantiated and imposed the penalty under the Banking Regulation Act, 1949 (AACS).
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Melur, Tamil Nadu