The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on the Bijnor Urban Co-operative Bank based in Bijnor in the state of Uttar Pradesh.
The UCB was faulted on following counts, read a press release of the RBI
-Sanctioning Loans and Advances to Directors and their Relatives – Violation of Para 5 of Master Circular UBD.CO.BPD.MC.No.8 /12.05.001/2011-12 dated July 1, 2011.
– Know Your Customer norms – Violation of RBI Circular UBD.PCB.Cir.No.30 /09.016.00/2004 – 05 dated December 15, 2004.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted its written reply.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.