Case Brief
The Reserve Bank of India imposed a monetary penalty on Udyam Vikas Sahakari Bank Limited, Pune by order dated July 15, 2021. The penalty was levied for contravention of RBI directions on Exposure Norms and Statutory / Other Restrictions applicable to UCBs, after inspection findings showed the bank had not adhered to the prudential inter-bank gross exposure limit and the prudential inter-bank single counterparty limit. RBI issued a notice, considered the bank’s reply, and found the violations substantiated 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 2.00 L
- Entity Type
- Co-operative bank
- Location
- Pune, Maharashtra