Reserve Bank of India imposes monetary penalty on Urban Co-operative Bank Ltd., Budaun (U.P.)

Case Brief

RBI imposed, by order dated June 07, 2022, a monetary penalty of ₹2.00 lakh on Urban Co-operative Bank Ltd., Budaun for contravention of Section 36(1) and Section 35A read with Section 56 of the Banking Regulation Act, 1949. The penalty was based on inspection findings as of March 31, 2020, which showed the bank had failed to comply with RBI directions issued under the Supervisory Action Framework and RBI directions on frauds-classification and reporting. RBI issued a show-cause notice, considered the bank’s written reply and oral submissions, and then concluded the violations were substantiated.