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

Case Brief

By an order dated October 07, 2024, RBI imposed a monetary penalty of Rs 50,000 on The Urban Co-operative Bank Limited, Dharangaon, Maharashtra. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023 and supervisory findings of non-compliance with RBI instructions issued under the Supervisory Action Framework (SAF). RBI stated that the bank had incurred capital expenditure without prior approval of RBI, contrary to the directions issued under SAF, and imposed the penalty under the Banking Regulation Act, 1949.