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RBI slaps Rs 1 cr fine on Mehsana Urban Co-op Bank

Press Trust of India  |  Mumbai 

The Reserve has imposed a fine of 1 crore on Gujarat-based Urban for violating its guidelines by granting advances to directors and their relatives.

The Reserve of has imposed a monetary penalty of 1 crore on Urban Bank Limited, (Gujarat), the RBI said in a notification.

The said the penalty has been imposed for violation of the directives to Urban 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 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 15 lakh in 1983 and reached a paid up capital of Rs 87.07 crore as on March 31, 2014, as per the website.

The bank said it received scheduled by RBI in 2000 and has 53 branches as of now spread across and

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 21:05 IST