RBI imposes monetary penalty on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad

Case Brief

By an order dated June 12, 2023, RBI imposed a monetary penalty on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad for non-compliance with RBI directions relating to basic and comprehensive cyber security frameworks for primary (urban) cooperative banks and internet banking facilities for cooperative banks. RBI said its IT examination and an investigation report linked to a cyber security incident showed the bank had failed to put certain mandated controls in place. After reviewing the bank's reply, additional submissions, and oral hearing, RBI held that the non-compliance was substantiated and warranted the penalty under the Banking Regulation Act, 1949.