Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
6 Mar 2019
Case Brief
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.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding, based on the bank's reply and personal hearing, that the bank had violated RBI Instructions/Guidelines on Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit.
Operating Impact
The bank must absorb the monetary penalty; the release does not state any additional operational restriction or deadline. The action is adverse to the bank but does not describe direct forward-looking limits on depositors, borrowers, or counterparties beyond the fine itself.
Regulatory Basis
- Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank