Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Mysore Merchants Co-operative Bank Ltd., Mysore, Karnataka, for non-adherence to directions issued under Management of Advances-UCBs. RBI said inspection findings showed instances of sanction of gold loans in breach of the cap under the bullet repayment scheme. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the charge of non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949 (AACS).
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Mysore, Karnataka
- Order Date