RBI slaps fine of Rs 1cr on Mehsana co-op bank

The Reserve Bank of India on Monday said it has imposed a penalty for Rs 1 crore on The Mehsana Urban Cooperative Bank Limited, Mehsana, for various violations. Granting loans to directors and their relatives in violation of norms was one of the irregularities cited by RBI for the penalty.

The Apex Bank said in a release that the penalty on the bank was for violation of directives/ instructions/ guidelines to urban cooperative banks, granting loans to bank's directors and their relatives, not complying with Know Your Customer/ Anti Money Launde-ring norms, group exposure norms, among others.

The RBI had issued a show-cause notice to Meh-sana Urban Cooperative Bank. RBI said it came to the conclusion that the violations were substantiated and warranted imposition of penalty after considering facts of the case, the bank's reply in the matter, and oral submissions made during the cou-rse of the personal hearing.