Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 Sept 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Shri Mahavir Urban Co-operative Bank Ltd., Solapur under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its directives and guidelines on individual/single exposure ceiling for lending operations by urban co-operative banks. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violation was substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after concluding that Shri Mahavir Urban Co-operative Bank Ltd., Solapur had violated RBI directives and guidelines on individual/single exposure ceiling for lending operations by urban co-operative banks. The bank had been issued a show-cause notice and submitted a written reply, but RBI found the violation substantiated and imposed the penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not mention any additional operational restriction. The action serves as a compliance signal on adherence to exposure-ceiling norms for lending operations.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank