RBI imposes monetary penalty on Ramanagaram Urban Co-operative Bank Limited, Karnataka

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹75,000 on Ramanagaram Urban Co-operative Bank Limited, Karnataka. RBI said the action followed a statutory inspection and supervisory findings of non-compliance with its directions on ‘Exposure Norms & Statutory/Other Restrictions-UCBs’. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI sustained the charge of non-adherence to prudential inter-bank (Gross) and counter-party exposure limits. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.