RBI imposes monetary penalty on The Mahila Vikas Co-operative Bank Ltd., Ahmedabad, Gujarat

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Mahila Vikas Co-operative Bank Ltd., Ahmedabad, Gujarat, by order dated August 11, 2021. The penalty was levied for non-compliance with RBI directions concerning loans and advances to directors, their relatives and related firms/concerns, loans to directors acting as sureties/guarantors, and placement of deposits with other banks by Primary (Urban) Co-operative Banks. RBI said the action was based on deficiencies in regulatory compliance found during statutory inspection and related correspondence, and that the penalty does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.