RBI imposes monetary penalty on The Mandi Urban Co-operative Bank Ltd., Mandi, Himachal Pradesh

Case Brief

RBI, by order dated March 05, 2024, imposed a monetary penalty of Rs 6.00 lakh on The Mandi Urban Co-operative Bank Ltd., Mandi, Himachal Pradesh. The penalty was based on supervisory findings from a select scope inspection with reference to the bank’s financial position as on March 31, 2022, which found non-compliance with RBI directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks. RBI also sustained the charge that the bank breached prudential inter-bank exposure limits on a gross as well as counterparty basis. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.