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

Case Brief

RBI imposed a monetary penalty of ₹5.00 lakh on The Urban Co-operative Bank Limited., Anantnag by order dated September 12, 2024. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, which found non-compliance with RBI directions on ‘Investments by Primary (Urban) Co-operative Banks’. RBI specifically 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.