RBI imposes monetary penalty on The Yavatmal Urban Cooperative Bank Limited, Yavatmal, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on The Yavatmal Urban Cooperative Bank Limited, Yavatmal, Maharashtra. RBI said the bank had contravened / failed to comply with its directions to urban cooperative banks on Frauds – Classification and Reporting, based on findings from an inspection report for the bank’s financial position as on March 31, 2019. The penalty was imposed after a show-cause notice process under the Banking Regulation Act, 1949, and RBI clarified that the action was based on regulatory compliance deficiencies and not intended to pronounce on the validity of any transaction or agreement with customers.