Case Brief
By an order dated October 05, 2023, RBI imposed a monetary penalty of ₹2.00 lakh on Mizoram Co-operative Apex Bank Ltd., Aizawl. The penalty was imposed because the bank did not comply with RBI’s directions on Housing Finance applicable to State Co-operative Banks; the inspection findings showed that its total exposure to housing finance was above the prescribed limit. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the contravention was substantiated under Section 47-A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Aizawl, Mizoram