The Urban Co-operative Bank Ltd., Budaun

RBI imposed a Rs 7 lakh penalty on The Urban Co-operative Bank Ltd., Budaun for multiple regulatory breaches. The violations included non-transfer of amounts to the Depositor Education and Awareness Fund, excessive deposit rates, risky lending, and exposure-limit breaches.

The bank must absorb the financial penalty and address the compliance gaps identified by RBI. The action does not itself impose a fresh operational restriction, but RBI may initiate further action if the underlying violations persist; depositors and counterparties are indirectly affected by the bank’s compliance failures and exposure-limit breaches.

• section 26 A (2) read with section 56 of the Banking Regulation Act, 1949
• section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act

RBI imposed a ₹2 lakh penalty on Urban Co-operative Bank Ltd., Budaun. The action was for non-adherence to RBI directions under SAF and fraud classification/reporting requirements.

The bank must bear the ₹2 lakh penalty; the order does not itself impose a fresh operating restriction. The findings, however, underscore ongoing compliance expectations around supervisory directions and fraud reporting for the bank’s management and control functions.

• sub-section (1) of Section 36
• Section 35 A read with Section 56 of the Banking Regulation Act, 1949
• Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949