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Lucknow University Primary Co-operative Bank Ltd., Lucknow

Co-operative bankLucknow, Uttar Pradesh

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 3.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

19 Sept 2024

Case Brief

RBI, by order dated September 13, 2024, imposed a monetary penalty of ₹3.00 lakh on Lucknow University Primary Co-operative Bank Ltd., Lucknow. The penalty followed a statutory inspection and show-cause proceedings that found non-compliance with RBI’s direction on investments by Primary (Urban) Co-operative Banks, including breach of prudential inter-bank (gross) and counterparty exposure limits, under the Banking Regulation Act, 1949.

Why RBI Acted

Capital & exposure normsReporting & disclosure

RBI imposed a monetary penalty after a statutory inspection and subsequent show-cause process found non-compliance with its direction on ‘Investments by Primary (Urban) Co-operative Banks’. The sustained charge was non-adherence to prudential inter-bank (gross) and counterparty exposure limits, in exercise of powers under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

Operating Impact

The bank must absorb the penalty and address the compliance deficiencies identified by RBI, particularly around investment and exposure-limit adherence. The order does not invalidate any customer transaction, but RBI may initiate further action if warranted.

Regulatory Basis

  • section 47A(1)(c)
  • sections 46(4)(i)
  • section 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 3.00 L
Order Date
13 Sept 2024
Effective From
13 Sept 2024
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank