RBI imposed penalty on Urban Co-operative Bank Ltd., Mainpuri, Uttar Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 5,00,000 on Urban Co-operative Bank Ltd., Mainpuri, Uttar Pradesh 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 relating to classification of investments into HTM/AFS/HFT categories, prudential norms on inter-bank gross exposure and counterparty limit, and income recognition, asset classification, provisioning and other related matters for UCBs. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and imposed the penalty.