Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The Mehsana Urban Co-operative Bank Ltd., Mehsana (Gujarat), under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had violated instructions on membership of co-operative societies, conduct of non-banking business, use of the word 'Bank' in the name of another institution, and share-linking norms. After considering the bank’s reply and personal submissions, RBI concluded that the violations were substantiated and that penalty was warranted.