RBI imposes penalty on The Muslim Co-operative Bank Ltd

RBI imposes penalty on The Muslim Co-operative Bank Ltd

The Reserve Bank of India (RBI) has imposed amonetary penalty of RS 1.00 lakh (Rupees One lakh only) on TheMuslim Co-operative Bank Ltd., Mysuru, Karnataka, RBi has imposed the penalty in exercise of the powers vested in itunder the provisions of Section 47 A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable toCo-operative Societies) for violation of Reserve Bank of Indias instructions contained in Circular dated April 29, 2003 and datedJune 24, 2003 and also Directive dated April 29, 2003 by grantingloans to the relatives of the directors.

The Reserve Bank of India had issued a Show Cause Notice to thebank, in response to which the bank submitted a written reply. Afterconsidering the facts of the case and banks reply in the matter,the Reserve Bank came to the conclusion that the violations weresubstantiated and warranted imposition of penalty.UNI JS SM1413

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