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RBI Imposes Rs 1 Lakh Penalty On Melur Co-Operative Urban Bank, Madurai

The RBI said statutory returns submitted by the bank for the period ended March 2020, revealed, inter alia, 'contravention of / non-compliance' with the directions on Board of Directors - UCBs.

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The RBI on Tuesday imposed a penalty of Rs 1 lakh on Melur Co-operative Urban Bank, Melur, Madurai for contravention of certain provisions concerning board of directors.

The RBI said statutory returns submitted by the bank for the period ended March 2020, revealed, inter alia, 'contravention of / non-compliance' with the directions on Board of Directors - UCBs.

A show cause notice was issued to the Tamil Nadu-based bank.

After considering the bank's replies, the RBI came to the conclusion that the charges of non-compliance with the extant RBI directions were substantiated and warranted imposition of monetary penalty.

The central bank, however, said the penalty is based on the 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.

(PTI)