RBI imposes monetary penalty on The Berhampur Co-operative Urban Bank Ltd., Odisha

Case Brief

RBI imposed a monetary penalty on The Berhampur Co-operative Urban Bank Ltd., Odisha by order dated June 21, 2023. The penalty was levied for contravention of RBI directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’ and ‘Know Your Customer (KYC)’, after inspection findings showed non-compliance with prudential inter-bank exposure limits, failure to allot UCICs to individual customers, and failure to periodically review risk categorization of accounts. RBI stated the action was based on regulatory compliance deficiencies and not meant to pronounce on the validity of any customer transaction or agreement.