The Reserve Bank of India has imposed a monetary penalty of ₹ 3.00 lakh (₹ Three lakh only) on the Rajputana Mahila Urban Co-operative Bank Limited, Jaipur, in exercise of powers vested in it under the provisions of Section 47A (1)(b) read with section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violations of the guidelines/directives issued by Reserve Bank on finance against properties situated in unauthorized colonies and providing locker facility at its Extension Counter without obtaining prior approval of RBI.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made personal hearing. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the monetary penalty. Accordingly, it penalized the bank.
Press Release: 2015-2016/1701
Source Reserve Bank of India