Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The A P Mahajan’s Co-operative Urban Bank Ltd., Hyderabad, Telangana, after concluding that the bank had violated RBI directives and guidelines on Exposure Norms and Statutory/Other Restrictions. The penalty was imposed under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), following a show-cause notice, the bank’s written reply, and a personal hearing.