The Reserve Bank of India has imposed, by an order dated August 10, 2020, a monetary penalty of Rs 1.00 lakh on the Co-operative Urban Bank Ltd., Parlakhemundi.
The UCB was faulted for contravention of the directions issued by RBI on “Exposure Norms and Statutory/Other Restrictions-UCBs”.
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.
Based on the inspection, a Notice was issued to the bank advising it to show cause as to why the penalty should not be imposed for non-compliance with the directions.
After considering the bank’s reply, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
