RBI imposes monetary penalty on U. P. Postal Primary Co-operative Bank Ltd., Lucknow, Uttar Pradesh

Case Brief

RBI imposed a monetary penalty of ₹3.00 lakh on U. P. Postal Primary Co-operative Bank Ltd., Lucknow, after supervisory examination found non-compliance with specific directions issued under the Supervisory Action Framework. The key violation cited was offering higher interest rates on deposits than those offered by State Bank of India, contrary to RBI's directions. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, following a show-cause process and consideration of the bank's reply and oral submissions.