The Panchkula Urban Co-operative Bank Ltd., Panchkula

RBI imposed a monetary penalty after its statutory inspection (with reference to the bank's financial position as on March 31, 2022) and subsequent supervisory process. The bank was issued a show-cause notice for failure to comply with RBI directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs'; after considering the reply, RBI held that the charge of breaching prudential inter-bank exposure limit on both gross and counterparty basis was sustained. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the penalty and improve compliance with RBI's exposure norms. The order does not itself impose an operational restriction, but it signals supervisory concern and leaves RBI free to initiate further action if warranted.