The Reserve Bank of India has imposed a monetary penalty of Rs ten Lakh on Urban Co-operative Bank Ltd., Basti (U.P.) in exercise of powers vested in it.
The UCB was faulted for violation of RBI Instructions and Guidelines on Opening of on-site ATM without prior permission from RBI.
It was also faulted for Exposure Norms and Statutory/ Other Restrictions- UCBs, KYC/ AML norms and Investments by UCBs.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank submitted a written reply.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
