Reserve Bank of India penalises The Mehsana Urban Co-operative Bank Limited, Mehsana (Gujarat) by INR 1 Crore

          Reserve Bank of India has informed to public at large that it has imposed a monetary penalty of ₹ 1.00 Crore (Rupees One Crore only) on The Mehsana Urban Co-operative Bank Limited, Mehsana (Gujarat), in exercise of the powers vested in it under the provisions of Section 47A(1) (c) .

The penalty is for multiple for violation of the directives/ instructions/ guidelines issued to Urban Co-operative Banks (UCBs) , ibid relating to grant of advances to directors and their relatives, Know Your Customer(KYC)/Anti Money Laundering(AML) norms, group exposure norms, etc.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply.

After considering the facts of the case and the bank’s reply in the matter and the oral submissions made in the personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.

          The Mehsana Urban Co-operative Bank Limited  was established on 23rd October, 1983, registered under Co Operative Society Act 1961 Registration No. 20052 The RBI License No. DB/UBD GJ 357 P dt. 28/09/1983

The Bank started with one branch at Mehsana with Share Capital of Rs. 15.00 lacs, made continuous Progress as on 31/03/2014 paid up share capital is Rs. 87.07 crore.

The Bank was given status of Scheduled Bank by Reserve Bank of India in the year 2000.

The Mehsana Urban Co-operative Bank Limited  has 53 branches spread  Gujarat and 1 branch in Mumbai, Maharashtra .

The town of Mehsana was established by Mesaji Chavda of Chawda Dynasty in Vikram Samwat 1414. Later Gaekwads established their administrative headquarters to mehsana in 1902. In 1947 with India’s independence Mehsana was merged with union of india.

It was part of bombay state. Later in 1960 with the division of bombay state into Maharashtra and Gujarat. Mehsana became one of the districts of Gujarat.

There is a place built by Gaekwads in city known as Rajmahal.

The town is known for its ‘Dudhsagar Dairy’ plant, a post modernist structure designed by Achyut Kanvinde and a must see for architecture enthusiasts.