Case Brief
The Reserve Bank of India penalised Urban Co-operative Bank Ltd., Badaun, 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 found violations of supervisory instructions, prudential norms on inter-bank gross and counter-party exposure ceiling on deposits, concurrent audit of investment transactions, professional director requirements, KYC/AML guidelines, and membership of credit information companies. RBI had issued a show-cause notice, but the bank did not submit a written reply; the authority concluded the violations were substantiated and imposed a monetary penalty of Rs 5 lakh.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Badaun, Uttar Pradesh