Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50.00 lakh on The Urban Co-operative Bank Ltd. No. 1758, Perinthalmanna, Malappuram District, Kerala. RBI said the bank failed to comply with its directions on Income Recognition and Asset Classification (IRAC) norms and on Management of Advances-UCBs, based on a statutory inspection as of March 31, 2019. After issuing a show-cause notice and considering the bank's reply, RBI concluded that the non-compliance was substantiated and warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50.0 L
- Entity Type
- Co-operative bank
- Location
- Perinthalmanna, Kerala