RBI imposed 2 lakh penalty on Urban Co-operative Bank, Budaun

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.

RBI imposed 2 lakh penalty on Urban Co-operative Bank, Budaun
RBI imposed 2 lakh penalty on Urban Co-operative Bank/ PTI Image

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on the Urban Co-operative Bank Ltd., Budaun (the bank) for contravention of sub-section (1) of Section 36 and Section 35 A read with Section 56 of the Banking Regulation Act, 1949. 

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.

The respective bank had failed to adhere to the RBI directions issued under the Supervisory Action Framework (SAF) and the RBI directions on Frauds classification and reporting. On this RBI issued a Notice was to the bank advising it to show cause as to why a penalty should not be imposed for contravention of RBI directions and the said sections of the Banking Regulation Act, 1949.

Howeve, after considering the bank’s reply made during the personal hearing, RBI came to the conclusion that the aforesaid charges of non-adherence / violation warranted imposition of monetary penalty.

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