The Reserve Bank of India has imposed a monetary penalty of Rupees Five lakh on the Adarsh Mahila Mercantile Co-operative Bank Ltd., Muzaffarnagar, Uttar Pradesh due to violation of exposure norms on single and group borrowers.
The urban cooperative bank has also been faulted on the violation of regulatory restrictions on advances to directors and their relatives.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted its written reply and requested for personal hearing with the Regional Director.
After considering the facts of the case and the bank’s reply and submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.