The Reserve Bank of India has imposed a monetary penalty on The A P Mahajan’s Co-operative Urban Bank Ltd., Hyderabad, Telangana, in exercise of the powers vested in it.
The UCB was found guilty of violation of Reserve Bank of India directives and guidelines on Exposure Norms and Statutory/Other Restrictions.
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.