RBI imposes monetary penalty on The Balasore Cooperative Urban Bank Limited, Balasore, Odisha

Case Brief

RBI imposed a monetary penalty of ₹1.00 lakh on The Balasore Cooperative Urban Bank Limited, Balasore, Odisha, by order dated July 23, 2021. The penalty was levied for contravention of RBI's Master Circular on 'Exposure Norms and Statutory/Other Restrictions-UCBs' dated July 01, 2015. RBI said the action followed an inspection of the bank's financial position as on March 31, 2019, a show-cause notice, and consideration of the bank's reply and additional submissions, after which the non-compliance was found substantiated under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (AACS).