Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad by order dated June 28, 2021. RBI said the bank had failed to comply with its Master Directions on ‘Interest Rate on Deposits’ and ‘Know Your Customer’, based on a statutory inspection and related examination of records. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after the bank’s response, oral submissions, and additional submissions were considered.