The apex bank said the penalty has been imposed for violation of the directives to Urban Co-operative Banks (UCBs) relating to grant of advances to directors and their relatives, Know Your Customer(KYC)/Anti Money Laundering(AML) norms, group exposure norms, etc.
The regulator said it 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 and the bank's reply in the matter and the oral submissions made in the personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty," it said.
The bank has 17 directors on board, two of whom are female members, as per information on the company website.
Mehsana Urban Co-Op Bank started with a one branch with a share capital of Rs 15 lakh in 1983 and reached a paid up capital of Rs 87.07 crore as on March 31, 2014, as per the website.
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