The Reserve Bank of India has imposed a monetary penalty on Mahoba Urban Co-operative Bank Ltd., Mahoba, (U.P.) in exercise of powers vested in it under the provisions of Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies).
The UCB was found guilty of violation of RBI Instructions/Guidelines on Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank submitted a written reply.
After considering the facts of the case, the bank’s reply in the matter and personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.