Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.00 lakh on The Mahabaleshwar Urban Co-operative Bank Limited., Mahabaleshwar, Maharashtra, by order dated August 02, 2023. RBI said the bank contravened Section 20A read with Section 56 of the Banking Regulation Act, 1949, along with RBI directions under the Supervisory Action Framework, and directions on Maintenance of Deposit Accounts and KYC. The inspection found that the bank granted interest relief in an account of its ex-director, sanctioned fresh loans and renewed CC limits despite SAF restrictions, and did not carry out annual review of inoperative accounts or periodic review of customer risk categorisation. RBI imposed the penalty after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location