The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh on Shri Mahila Sewa Sahakari Bank Ltd., Ahmedabad for contravention of directions issued by RBI.
These included flouting directions on ‘Maintenance of Statutory Reserves –CRR and SLR by Primary (Urban) Co-operative Banks’; ‘Loans and advances to directors etc. – directors as surety/guarantors – clarification’; ‘Loans and advances to directors, relatives, and firms/concerns in which they are interested’; ‘Declaration of dividend by UCBs’ and ‘Depositor Education and Awareness Fund Scheme, 2014’.
This penalty has been imposed in exercise of powers vested in the RBI and after considering the failure of the bank to adhere to the directions issued by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI.