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Urban Co-operative Bank Ltd., Basti (U.P.)

Co-operative bankBasti, U.P.

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

Recorded RBI impact

Fine: Rs 10.0 L

Monetary penalty · Fresh imposition

S2

Published by RBI

17 Oct 2018

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10,00,000 on Urban Co-operative Bank Ltd., Basti (U.P.) under Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions/guidelines on opening an on-site ATM without prior permission, exposure norms and statutory/other restrictions applicable to UCBs, KYC/AML norms, and investments by UCBs. After issuing a show-cause notice and reviewing the bank's written reply, RBI concluded that the contraventions were substantiated and merited penalty.

Why RBI Acted

Licensing breachCapital & exposure normsKYC / AML

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) after finding violations substantiated. The bank was found to have opened an on-site ATM without prior permission from RBI and breached RBI instructions/guidelines on exposure norms, statutory/other restrictions for UCBs, KYC/AML norms, and investments by UCBs. RBI had issued a show-cause notice and considered the bank's written reply before concluding that penalty was warranted.

Operating Impact

The bank must bear the monetary penalty and the finding may affect its regulatory compliance record, but the release does not impose any new operational restriction or deadline. Customers are not directly restricted by this order.

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 10.0 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank