Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5 lakh on Adarsh Mahila Mercantile Co-operative Bank Ltd., Muzaffarnagar, Uttar Pradesh, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found violations of exposure norms on single and group borrowers and violations of regulatory restrictions on advances to directors and their relatives. After a show-cause notice, the bank submitted its reply and sought a personal hearing, but RBI concluded that the contraventions were substantiated and imposed the penalty.