RBI imposes monetary penalty on The Nakodar Hindu Urban Co-operative Bank Limited, Nakodar

Case Brief

By an order dated March 31, 2024, RBI imposed a monetary penalty on The Nakodar Hindu Urban Co-operative Bank Limited, Nakodar. The bank was found, after statutory inspection and follow-up supervisory proceedings, to have failed to comply with RBI’s direction on investments by Primary (Urban) Co-operative Banks, including a sustained breach of the prudential inter-bank (gross) exposure limit. The penalty was levied under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.