HCBL Co-operative Bank Ltd, Lucknow (U.P.) –Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on HCBL Co-operative Bank Ltd., Lucknow, under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violation of RBI instructions/guidelines on All-Inclusive Directions under Section 35A of the Banking Regulation Act, 1949 (AACS), exposure norms, statutory requirements, and the inspection and audit system. RBI had issued a show-cause notice, considered the bank's written reply and personal hearing, and concluded that the violations were substantiated.