Case Brief
RBI, by order dated August 22, 2024, imposed a monetary penalty of ₹1.50 lakh on The Urban Co-operative Bank Ltd., Cuttack. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection with reference to the bank’s financial position as on March 31, 2023. RBI found sustained charges that the bank failed to review customer risk categorisation periodically, failed to update customer KYC on time, and breached the interbank exposure limit, in violation of RBI directions on KYC norms and Exposure norms / Statutory / Other Restrictions for UCBs.
Action Snapshot
- Primary Impact
- Fine: Rs 1.50 L
- Entity Type
- Co-operative bank
- Location
- Cuttack