RBI imposes penalty on The United Co-operative Bank Ltd., Bagnan Station Road(North), PO- Bagnan, Dist- Howrah, West Bengal

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on United Co-operative Bank Ltd., Bagnan Station Road (North), PO-Bagnan, District-Howrah, West Bengal. The action followed an inspection as on March 31, 2016, a show-cause notice, and consideration of the bank’s written and oral submissions. RBI concluded that the bank had violated or failed to adhere to directives and guidelines in the Master Circular on area of operation, branch authorisation, opening/up-gradation of extension counters and ATMs, and shifting/splitting/closure of offices, along with Section 35(2) of the Banking Regulation Act, 1949 (AACS). The penalty was imposed under Section 47A(1)(a) and (c) read with Section 46(2) and (4) of the Act.