RBI imposes monetary penalty on UCO Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2,68,30,000 (Rupees Two crore sixty eight lakh and thirty thousand only) on UCO Bank (the bank) for contravention of provisions of section 26A of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain directions issued by RBI on 'Interest Rate on Advances', 'Opening of Current Accounts by Banks - Need for Discipline', 'Interest Rate on Deposits' and 'Frauds classification and reporting by commercial banks and select FIs'.

This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and section 51(1) of BR Act.

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The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI with reference to its financial position as on March 31, 2022.

Based on supervisory findings of contravention of BR Act/non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why maximum penalty should not be imposed on it for its failure to comply with the provisions of BR Act and RBI directions.

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