Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Mahoba Urban Co-operative Bank Ltd., Mahoba, (U.P.) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was imposed after RBI found the bank had violated instructions/guidelines on Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit. RBI had issued a show-cause notice, considered the bank's written reply and personal hearing, and concluded that the violations were substantiated.