The Urban Co-operative Bank Ltd., Maunath Bhanjan, (U.P.) - Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3,00,000 on The Urban Co-operative Bank Ltd., Maunath Bhanjan (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 and guidelines relating to supervisory instructions issued under Section 36(1), membership of CICs, prudential norms on gross and single inter-bank counterparty limits, director-related loans, unsecured loans, and designated director requirements. After issuing a show-cause notice, reviewing the bank’s written reply, and granting a personal hearing, RBI concluded that the violations were substantiated and merited penalty.