The Reserve Bank of India has imposed, a monetary penalty of ₹37,50,000/- on The Maharashtra State Co-operative Bank Ltd., Mumbai
The statutory inspection of the bank conducted by NABARD with reference to the bank’s financial position as on March 31, 2019, the Inspection Report pertaining thereto and examination of all related correspondence revealed, inter alia, non-compliance by the bank with aforesaid directions issued by NABARD and deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Based on the inspections findings had issued a Notice to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions
After considering the bank’s reply to the notice and oral submissions during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with NABRAD directions were substantiated and warranted imposition of monetary penalty and imposed a penalty of ₹ ₹37,50,000/- lakh Rupees.
