The Reserve Bank of India (RBl) has imposed, by an order dated July 30, 2021, a monetary penalty of ?3.00 lakh (Rupees Three Lakh only) on the Noida Commercial Co-operative Bank Ltd., Ghaziabad, Uttar Pradesh.
The UCB was faulted for contravention of sections 23 and 35 A read with section 56 of the Banking Regulation Act, 1949 and regulations on ‘Exposure Norms’ and norms on ‘Board of Directors-UCB’ in relation to director related loans.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid provisions of the Act and directions issued thereunder by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.