RBI imposes monetary penalty on United Mercantile Urban Co-operative Bank Limited, Kanpur

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on United Mercantile Urban Co-operative Bank Limited, Kanpur, after a statutory inspection and enforcement process found non-compliance with RBI directions issued under the Supervisory Action Framework (SAF) for Primary (Urban) Co-operative Banks. RBI noted that the bank had offered higher interest rates on term and savings deposits than those offered by State Bank of India, contrary to specific directions under SAF. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.