The Mechanical Department Primary Urban Co-operative Bank Ltd., Gorakhpur (U.P.) - Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5,00,000 on The Mechanical Department Primary Urban Co-operative Bank Ltd., Gorakhpur (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 RBI instructions/guidelines on the inspection and audit system in UCBs and supervisory instructions issued under Section 36(1) of the Act. After a show-cause notice and the bank’s written reply, RBI concluded the violations were substantiated and warranted the penalty.