The Reserve Bank of India has imposed a monetary penalty of Rs three lakh on The Urban Co-operative Bank Ltd., Maunath Bhanjan (U.P.) in exercise of powers vested in it.
The UCB was found guilty of for violation of RBI Instructions/Guidelines relating to Supervisory Instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (AACS), membership of CICs, Prudential Norms-Gross and single Inter-bank Counter Party Limit, Director related loans, Unsecured loans and Designated Director.
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, the bank’s reply in the matter and personal hearing, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
