The Reserve Bank of India has imposed a penalty worth Rs 1 lakh on Pune based Muslim Cooperative Bank on charges of violation of guidelines set by the regulator.

The charges held on the bank included donation more than the defined limit of 1% of profits declared by the bank in the last year.

The violation has taken place multiple times from August 1, 2005 and July 27, 2009 where the percentage of donation ranged from 13.40% to 18.20%.

A written reply was given to RBI by the bank in response to a show cause notice generated to it.