The Reserve Bank of India has imposed a monetary penalty on National Urban Co-operative Bank Ltd., Bahraich, Uttar Pradesh in exercise of powers vested in it.
The UCB was penalized for the violation of RBI Instructions/Guidelines on classification of investments into HTM/AFS/HFT categories, conducting Concurrent Audit, Prudential Norms on Inter-bank Gross Exposure and Counter Party Limit and Know Your Customer Norms.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank had submitted a written reply.
After considering the facts of the case, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.