The Reserve Bank of India has imposed a monetary penalty on the Rajlaxmi Mahila Urban Co-operative Bank Limited based in Jaipur.
The urban cooperative Bank was found violating the RBI directives on unsecured advances, IRAC norms and OBC charges.
The apex Bank had issued a Show Cause Notice to the bank in response to which the latter submitted a written reply.
After considering the facts of the case, the bank’s reply and also personal submissions in the matter, RBI came to the conclusion that the violation was substantiated and warranted imposition of penalty. Accordingly, it penalized the bank.
Similarly RBI has also imposed a monetary penalty on Rajasthan Urban Co-operative Bank Limited for violating the RBI directives on individual and group exposure ceiling, IRAC norms and window-dressing.
After thorough investigation of the matter, RBI came to the conclusion that the bank deserves penalty.