RBI imposes monetary penalty on The Utkal Cooperative Bank Ltd., Bhubaneswar, Odisha

Case Brief

By an order dated January 31, 2023, RBI imposed a monetary penalty of Rs 15.00 lakh on The Utkal Cooperative Bank Ltd., Bhubaneswar, Odisha. The penalty was imposed for contravention of RBI directions on Exposure Norms and Statutory/Other Restrictions for UCBs and specific directions issued under the Supervisory Action Framework (SAF). RBI's inspection, based on the bank's financial position as on March 31, 2021, found that the bank had breached prudential inter-bank gross exposure norms and prudential inter-bank counter-party limits, and had violated SAF directions by offering a higher rate of interest on deposits than that offered by SBI. RBI said the action was based on regulatory non-compliance and did not pronounce on the validity of any customer transaction or agreement.