Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 5,00,000 on National Urban Co-operative Bank Ltd., Pratapgarh, Uttar Pradesh under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank was issued a show cause notice and submitted a written reply, but RBI concluded that the violations were substantiated. The cited violations concerned RBI instructions/guidelines on exposure norms and statutory/other restrictions, know your customer norms, and obtaining membership of credit information companies (CICs).