Case Brief
What Happened
The Reserve Bank of India has penalised National Urban Co-operative Bank Limited, New Delhi by imposing a monetary penalty of Rs 2 lakh under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated its instructions/guidelines on unsecured personal loans and had KYC deficiencies. After issuing a show-cause notice and considering the bank’s written reply, RBI concluded that the violations were substantiated and that penalty was warranted.