Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on Banda Urban Co-operative Bank Ltd., Banda, U.P. The penalty was levied for contravention of RBI directions on “Exposure Norms and Statutory / Other Restrictions – UCBs,” specifically for failure to comply with prudential inter-bank (gross) exposure norms. RBI stated that the action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after an inspection based on the bank’s financial position as on March 31, 2021 and after considering the bank’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Banda, U.P