The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on The Kuppam Co-operative Town Bank Ltd.,Kuppam, Andhra Pradesh in exercise of the powers vested in it.
The UCB was found guilty of violations of Reserve Bank of India directions issued under Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) and instructions/guidelines on submission of compliance report and continuous non-submission of the returns u/s 27(2) of the Act ibid.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank had not submitted its reply.
After considering the facts of the case, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of penalty.