Reserve Bank Penalises United Commercial Co-operative Bank Limited, Kanpur, Uttar Pradesh

Case Brief

Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on United Commercial Co-operative Bank Limited, Kanpur, Uttar Pradesh under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was found to have not submitted Off-Site Surveillance returns since April 2012, in violation of Section 27, and to have failed to prepare, submit and publish its balance sheet, profit and loss account, and auditor’s report for the year ended March 31, 2012, in violation of Sections 29 and 31 read with Rule 10 of the relevant Co-operative Societies Rules. RBI had issued a show-cause notice, but the bank did not respond or furnish the missing documents, leading RBI to conclude that the violations were substantiated and warranted penalty.