The Reserve Bank of India has imposed a monetary penalty of ? 50,000/- (Rupees fifty thousand only) on City Co-operative Bank Ltd., Hassan, in exercise of the powers vested in it.
The UCB was found violating the Supervisory Action Framework (SAF) instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (AACS).
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank sought personal hearing.
After considering the facts of the case and bank’s representation in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.