RBl imposes monetary penalty on the Urban Co-operative Bank Ltd., Anantnag

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Urban Co-Operative Bank Limited, Anantnag by order dated December 08, 2021. RBI said the bank contravened section 35A read with section 56 of the Banking Regulation Act, 1949 and the regulations on Exposure Norms and Statutory/Other Restrictions for UCBs. The action followed an inspection that found non-adherence to exposure norms, after which RBI issued a show-cause notice and considered the bank's reply and submissions before confirming the violation and imposing penalty under section 47A(1)(c) read with section 46(4)(i) and section 56.