RBI imposes monetary penalty on Mahesh Urban Cooperative Bank Limited, Parli Vaijnath, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Mahesh Urban Cooperative Bank Limited, Parli Vaijnath, Maharashtra, following a supervisory inspection conducted with reference to its financial position as of March 31, 2024. RBI found that the bank had failed to reduce its single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit under SAF, and had also breached the single counterparty exposure limit for Non-SLR investments. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after issuing a show-cause notice and considering the bank's written reply and oral submissions.