RBI imposes monetary penalty on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, Madhya Pradesh

Case Brief

By an order dated June 22, 2023, RBI imposed a monetary penalty of Rs 1.00 lakh on Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, for contravention of RBI directions on 'Exposure Norms & Statutory/Other Restrictions - UCBs' and 'Investments by Primary (Urban) Co-operative Banks'. The supervisory findings, based on the bank's financial position as on March 31, 2022, indicated non-compliance with prudential inter-bank (gross) exposure limit and prudential inter-bank counterparty limit. RBI stated the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, after considering the bank's replies and oral submissions.