Pen Co-operative Urban Bank Ltd., Pen, Raigad, Maharashtra – Penalised
Case Brief
RBI imposed a monetary penalty on Pen Co-operative Urban Bank Ltd., Pen, Raigad, Maharashtra under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. The bank was found to have violated Section 35(2) of the Act after RBI issued a show-cause notice and examined the bank's reply. RBI concluded that the violation was established and imposed a penalty of Rs 1 lakh.
The Reserve Bank of India imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949. The bank was found to have violated Section 35(2) of the Act; RBI issued a show-cause notice, considered the bank's written reply, and concluded that the violation was conclusively established.
Severity Assessment
A penalty of Rs 1 lakh falls within the lowest monetary band (<= Rs 2 lakh), and there is no additional operational restriction.
The bank must absorb the monetary penalty of Rs 1 lakh; the release does not describe any additional operating restriction or remedial deadline. The action is adverse only to the penalized bank and has no stated direct impact on customers or counterparties beyond the compliance finding.
Published as Pen Co-operative Urban Bank Ltd.
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