Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5.00 lakh on Imperial Urban Co-operative Bank Ltd., Faizabad, 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 made incorrect reporting in Form I relating to CRR/SLR and incorrect computation of DTL, violated KYC guidelines by not preparing risk profiles for all customers and not fixing threshold limits, and breached prudential inter-bank (gross) exposure limit and prudential inter-bank counterparty limit. RBI issued a show-cause notice, considered the bank’s reply, and concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Faizabad, Uttar Pradesh