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Urban Co-operative Bank Ltd., Basti

Co-operative bankBasti

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

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

26 Jun 2018

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1,00,000 on Urban Co-operative Bank Ltd., Basti under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The action followed a violation of RBI instructions/guidelines for opening an on-site ATM without obtaining prior approval from RBI. RBI had issued a show-cause notice, considered the bank’s written reply, and held that the violation was substantiated, justifying the penalty.

Why RBI Acted

Licensing breachReporting & disclosure

RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) because Urban Co-operative Bank Ltd., Basti opened an on-site ATM without prior approval from RBI, contrary to RBI instructions/guidelines. A show-cause notice was issued, the bank replied in writing, and RBI concluded the contravention was substantiated and warranted penalty.

Operating Impact

The bank must bear the monetary penalty of ₹1 lakh. The release does not indicate any additional operational restriction, but it signals RBI’s finding of non-compliance regarding ATM opening approvals.

Regulatory Basis

  • Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

Action Facts

Primary Impact
Fine: Rs 1.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank