Case Brief
What Happened
The Reserve Bank of India penalised Urban Co-operative Bank Ltd., Sitapur (U.P.) by imposing a monetary penalty of ₹5,00,000 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 violated instructions and guidelines relating to investment by primary (urban) co-operative banks, KYC Direction, 2016, membership of Credit Information Companies by co-operative banks, and income recognition, asset classification, provisioning and other related matters for UCBs. After issuing a show-cause notice and reviewing the bank's written response, RBI concluded the violations were substantiated.