The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh on Melur Co-operative Urban Bank based in Madurai District, Tamil Nadu.
The UCB was penalized for non-compliance with certain provisions of the directions issued by RBI contained in the Master Circular on Board of Directors – UCBs dated July 1, 2015.
The penalty has been imposed on the bank taking into account the failure of the bank to adhere to the aforesaid directions.
This action is based on the 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.