Case Brief
What Happened
RBI imposed a monetary penalty of Rs 50,000 on Sree Harihareshwara Urban Co-operative Bank Limited, Harihar, Karnataka, after a statutory inspection and subsequent show-cause proceedings. The bank was found to have failed to comply with RBI directions on Exposure Norms and Statutory/Other Restrictions for UCBs, specifically by not adhering to prudential inter-bank (gross) and counterparty exposure limits. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.