Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
11 Dec 2017
Case Brief
The Reserve Bank of India imposed a monetary penalty on The A P Mahajan’s Co-operative Urban Bank Ltd., Hyderabad, Telangana, after concluding that the bank had violated RBI directives and guidelines on Exposure Norms and Statutory/Other Restrictions. The penalty was imposed under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), following a show-cause notice, the bank’s written reply, and a personal hearing.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after issuing a show-cause notice, considering the bank’s written reply and personal hearing. The violations were found substantiated and related to RBI directives and guidelines on Exposure Norms and Statutory/Other Restrictions.
Operating Impact
The bank must absorb a ₹50,000 penalty; the release does not indicate any operational restriction, but it records a regulatory finding of non-compliance with RBI exposure and restriction-related norms.
Regulatory Basis
- Section 47A (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 50,000
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank