Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Tura Urban Cooperative Bank Limited by order dated August 10, 2020. The penalty was for contravention of RBI directions on 'Exposure Norms and Statutory/Other Restrictions-UCBs', found during inspection/scrutiny based on the bank's financial position as on March 31, 2018. RBI issued a show-cause notice, considered the bank's reply and oral submissions, and then concluded that the non-compliance was substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.