Case Brief
What Happened
RBI imposed a monetary penalty on National Urban Co-operative Bank Ltd., Bahraich, Uttar Pradesh under the Banking Regulation Act, 1949 (as applicable to co-operative societies). The penalty was for violations of RBI instructions/guidelines on investment classification into HTM/AFS/HFT categories, concurrent audit, prudential norms on inter-bank gross exposure and counterparty limits, and Know Your Customer norms. After a show-cause notice and the bank’s reply, RBI concluded that the violations were substantiated and imposed the penalty.