The Reserve Bank ofIndiahas imposed a monetary penalty of Rupees five lakh on Ernakulam District Co-operative Bank located in Kerala.
The Bank was found violating RBI norms by granting unsecured loans to M/s Mithra Agricultural Produce Committee (MAPC).
It also violated the Act in case of Rural Academy of Management Studies (RAMS).
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. Based on the reply, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.