Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
10 Jul 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 50,000 on Mahesh Urban Cooperative Bank Limited, Parli Vaijnath, Maharashtra, following a supervisory inspection conducted with reference to its financial position as of March 31, 2024. RBI found that the bank had failed to reduce its single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit under SAF, and had also breached the single counterparty exposure limit for Non-SLR investments. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after issuing a show-cause notice and considering the bank's written reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found the bank had not reduced its single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit, as required under SAF directions, and had breached the single counterparty exposure limit for Non-SLR investments. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause notice and consideration of the bank's reply and oral submissions.
Operating Impact
The bank must absorb the monetary penalty and address the compliance deficiencies identified by RBI, especially around borrower and counterparty exposure limits. The release does not describe a business restriction or suspension, but RBI indicates that further action may be initiated separately.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 7 Jul 2025
- Effective From
- 7 Jul 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank