The Reserve Bank of India has imposed a monetary penalty on Indapur Urban Co-operative Bank based in Indapur in Pune in exercise of the powers vested in it.
The UCB was found guilty of violations of the instructions and guidelines of the Reserve Bank of India relating to credit exposure norms on loans and advances and Know Your Customer (KYC).
The bank has also been faulted on violating anti-money Laundering (AML) guidelines issued by the regulator RBI.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, a press release of the apex bank read.
