RBI has imposed a monetary penalty of Rupees Fifty Thousand on the Mehkar Urban Co-operative Bank for non-compliance with the directions issued by RBI to UCBs on Board of Directors and Exposure Norms and Statutory/Other Restrictions.
This penalty has been imposed in exercise of powers vested in 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, RBI release says.
The inspection report of the bank based on its financial position as on March 31, 2019, revealed non-compliance with the directions issued by Reserve Bank of India on Board of Directors and Exposure Norms and Statutory/Other Restrictions.
Based on the same, a Notice was issued to the bank advising it to show cause as to why the penalty should not be imposed for non-compliance with the directions.