In keeping with the trend yet another UCB has gone under RBI’s hamme. The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Kisan Nagari Sahakari Bank Maryadit, Parbhani.
The urban cooperative bank has been faulted violating the Banking Regulation Act relating to non disclosure of Bank Guarantee issued and the directives issued by Reserve Bank of India on Guarantees, Co-Acceptance and Letter of Credit.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply.
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.