RBI imposes monetary penalty on Ahmednagar Merchant’s Cooperative Bank Limited, Ahmednagar, Maharashtra

Case Brief

RBI, by an order dated August 11, 2021, imposed a monetary penalty on Ahmednagar Merchant’s Cooperative Bank Limited, Ahmednagar, Maharashtra. The penalty was for contravention of / non-compliance with RBI directions issued to Urban Cooperative Banks on Frauds – Classification and Reporting. RBI said the action followed an inspection report for the bank’s financial position as on March 31, 2019, and was imposed after a show-cause notice, consideration of the bank’s replies, and oral submissions in personal hearing. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.