The Rajlaxmi Mahila Urban Co-operative Bank Limited, Jaipur – Penalised


The Reserve Bank of India has imposed a monetary penalty of `1.00 lakh (Rupees One Lakh only) on the The Rajlaxmi Mahila Urban Co-operative Bank Limited, Jaipur.  You would be surprised to know that one of the reasons for the monetary violation is violating RBI directives on OBC Charges.

The other two reasons are for violating the RBI directives/guidelines on unsecured advances, IRAC norms.

The bank has four branches spread around Jaipur at  Vakilwadi, Dwarka, CIDCO and Gangapur.

There are different ceiling for unsecured advances. However there is an aggregate ceiling on Unsecured Advances (with surety or without surety or for cheque purchase) i.e  should not exceed 10 per cent of its total assets as per the audited balance-sheet as on 31 March of the preceding financial year.

In simple terms, Surety means a condition wherein another person/firm has assumed responsibilities or debts in the event of default of the borrower.

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