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Mahoba Urban Co-operative Bank Ltd., Mahoba, Uttar Pradesh

Co-operative bankMahoba, Uttar Pradesh

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 8.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

29 Aug 2024

Case Brief

RBI, by order dated August 23, 2024, imposed a monetary penalty of Rs 8.00 lakh on Mahoba Urban Co-operative Bank Ltd., Mahoba, Uttar Pradesh. The penalty was imposed for contravention of section 26A(2) read with section 56 of the Banking Regulation Act, 1949, and for non-compliance with RBI directions on income recognition, asset classification, provisioning, and exposure norms applicable to UCBs. After inspection, notice, reply, and personal hearing, RBI concluded that the bank had failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, had not classified certain loan accounts as NPAs, and had breached the prudential single-borrower exposure limit.

Why RBI Acted

Reporting & disclosureLending normsCapital & exposure norms

By order dated August 23, 2024, RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The bank was found to have contravened section 26A(2) read with section 56 of the BR Act and failed to comply with RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs and Exposure Norms and Statutory / Other Restrictions – UCBs. RBI sustained charges that the bank did not transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period, did not classify certain loan accounts as NPAs, and breached the prudential single borrower exposure limit.

Operating Impact

The bank must absorb the financial penalty and address the underlying compliance gaps identified by RBI. The findings do not by themselves invalidate customer transactions, but they signal continued supervisory scrutiny and may be relevant to any further action RBI chooses to initiate.

Regulatory Basis

  • section 26A(2) read with section 56 of the Banking Regulation Act, 1949
  • section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 8.00 L
Order Date
23 Aug 2024
Effective From
23 Aug 2024
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank