The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs five lakh on Shri Yugprabhav Sahakari Bank based in Vadodara (Gujarat) for violating RBI guidelines on submission of proper compliance of RBI Inspection Report 2013.
The UCB was also faulted with violating the norm of maintenance of minimum 25% of Net Demand and Time Liabilities (NDTL) in Government and other approved securities and Income Recognition & Assets Classification (IRAC) norms.
The Reserve Bank of India had issued a Show Cause Notice to the bank based on the finding of inspection for the financial position. The bank submitted a written reply and made personal submission to the Regional Director, RBI, Ahmedabad.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.