Adarsh Mahila Mercantile Co-operative Bank Ltd., Muzaffarnagar

RBI imposed a ₹1 lakh penalty on Adarsh Mahila Mercantile Co-operative Bank Ltd., Muzaffarnagar for violating directions on loans to directors and related entities. The breach was found during inspection and upheld after the bank’s response and hearing.

The bank must pay the monetary penalty, but the order does not impose a new operational restriction or suspension. The finding may affect regulatory scrutiny and compliance expectations, especially around related-party lending and board governance, but does not by itself restrict day-to-day banking operations.

• Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949
• Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI imposed a Rs 5 lakh penalty on Adarsh Mahila Mercantile Co-operative Bank Ltd., Muzaffarnagar. The penalty was for exposure norm breaches and irregular advances to directors and their relatives.

The bank must absorb the monetary penalty; the order does not describe any operational restriction or licence action. The action is adverse only in the form of a financial penalty, with no stated forward-looking cap on business activity or customer access.

• Section 47 A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)