The Reserve Bank of India has imposed a monetary penalty on Urban Co-operative Bank Ltd., Mainpuri, Uttar Pradesh in exercise of powers vested in it.
The UCB was found guilty of violation of RBI Instructions and Guidelines on classification of investments into HTM/AFS/HFT categories, Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit and Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank had submitted a written reply.
After considering the facts of the case, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.