The United Co-operative Bank Ltd., Ahmedabad – Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on The United Co-operative Bank Ltd., Ahmedabad under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the penalty was based on violations noticed during the bank's inspection as on March 31, 2010, including non-compliance with KYC instructions, share linking norms, individual exposure ceiling, unsecured advances, submission of CTR statements, and relevant provisions of the Act. After issuing a show-cause notice and considering the bank's written reply, RBI concluded the contraventions were substantiated and imposed the penalty.