RBI imposed penalty on Bhadohi Urban Co-operative Bank Ltd., Bhadohi

Case Brief

The Reserve Bank of India imposed a monetary penalty on Bhadohi Urban Co-operative Bank Ltd., Bhadohi under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions and guidelines on nominal membership, exposure norms and statutory/other restrictions, prudential inter-bank gross exposure limit and inter-bank counterparty limit, and know your customer norms. RBI had issued a show-cause notice, considered the bank's written reply, and concluded that the violations were substantiated, warranting penalty.