The Reserve Bank of India has imposed a monetary penalty of Rs one Lakh on The Bodeli Urban Co-operative Bank based in Bodeli in the district of Chhota Udepur (Gujarat), in exercise of the powers vested in it.
The UCB was faulted for violations of RBI guidelines for ceiling on unsecured advances, credit sanction, KYC/AML guidelines regarding issuance of at-par cheques against cash and allotment of Unique Customer Identification Codes (UCICs) to its customers.
The Reserve Bank of India had issued a Show Cause Notice to the bank based on the finding of inspection for the financial position as on 31.03.2015, in response to which the bank submitted a written reply and made personal submission to the Committee of Senior Officers (CSO) headed by the Regional Director, RBI, Ahmedabad.
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.