The Reserve Bank of India has imposed a monetary penalty on the United Commercial Co-operative Bank Limited, Kanpur, Uttar Pradesh for the violations of Non-submission of Off-Site Surveillance (OSS) returns since April 2012 – Violation of Section 27 of the Act.
The UCB was found guilty of non-preparation, non-submission, non publication of the Balance Sheet, Profit & Loss account and Auditor’s report, for the financial year ended March 31, 2012.
A RBI press release said the bank thereby violated Section 29 and 31 of the Act, read with Rule 10 of Banking Regulation (Co-operative Societies) Rules, 1966.
The Reserve Bank of India had issued a Show Cause Notice to the bank. However, the bank had neither responded to the SCN nor submitted the returns or audited statements.
Accordingly, it was presumed that the bank had nothing to say in the matter and the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.