Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10,00,000 on Urban Co-operative Bank Ltd., Basti (U.P.) 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/guidelines on opening an on-site ATM without prior permission, exposure norms and statutory/other restrictions applicable to UCBs, KYC/AML norms, and investments by UCBs. After issuing a show-cause notice and reviewing the bank's written reply, RBI concluded that the contraventions were substantiated and merited penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Co-operative bank
- Location
- Basti, U.P.