U.P. Civil Secretariat Primary Co-operative Bank Limited, Lucknow (U.P.) - Penalised

Case Brief

The Reserve Bank of India has imposed a monetary penalty of Rs 1,00,000 on U.P. Civil Secretariat Primary Co-operative Bank Limited, Lucknow (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 found violations relating to Concurrent Audit of Investment Portfolio, Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit, Membership of Credit Information Companies, Know Your Customer guidelines, non-submission of compliance to the RBI Inspection Report, and making a donation despite having an accumulated loss during the previous year. The bank had received a show-cause notice, submitted a written reply, and was given a personal hearing before RBI concluded that the violations were substantiated and warranted penalty.