Case Brief
RBI, by order dated August 23, 2024, imposed a monetary penalty of Rs 8.00 lakh on Mahoba Urban Co-operative Bank Ltd., Mahoba, Uttar Pradesh. The penalty was imposed for contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on income recognition, asset classification, provisioning, and exposure norms applicable to UCBs. After inspection, notice, reply, and personal hearing, RBI concluded that the bank had failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, had not classified certain loan accounts as NPAs, and had breached the prudential single-borrower exposure limit.
Action Snapshot
- Primary Impact
- Fine: Rs 8.00 L
- Entity Type
- Co-operative bank
- Location
- Mahoba, Uttar Pradesh