The Reserve Bank of India has imposed a monetary penalty of Rs Five Lakh on The Mechanical Department Primary Urban Co-operative Bank Ltd., Gorakhpur (U.P.) in exercise of powers vested in it.
The UCB was found guilty of violation of RBI Instructions and Guidelines on Inspection and Audit System in UCBs and Supervisory Instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (AACS).
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 Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.
