Case Brief
What Happened
RBI, by order dated July 08, 2024, imposed a monetary penalty of ₹2.00 lakh on The Mahabaleshwar Urban Cooperative Bank Limited, Mahabaleshwar, Maharashtra. The penalty followed supervisory findings that the bank had failed to comply with RBI directions on exposure norms/statutory restrictions and prudential capital adequacy norms for UCBs. RBI noted that the bank sanctioned unsecured advances beyond the prescribed regulatory limit and did not adhere to share-linking-to-borrowings guidelines while sanctioning loans, and it invoked powers under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.