The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.50 lakh (Rupees One Lakh Fifty Thousand only) on The Urban Co-operative Bank Ltd., Cuttack for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC) norms’.
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| RBI Imposes Rs1.50 Lakh Penalty on Urban Co-operative Bank Cuttack |
RBI Imposes Rs1.50 Lakh Penalty on Urban Co-operative Bank Cuttack
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,50,000 (Rupees One Lakh Fifty Thousand only) on The Urban Co-operative Bank Ltd., Cuttack for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC) norms’ and ‘Exposure norms and Statutory / Other Restrictions – UCBs’.
Read Also: RBI imposes 1.27 crore penalty on Bank of Maharashtra
Background
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the Bank were sustained, warranting imposition of monetary penalty:-
- The bank had failed to review risk categorization of its customers as per the prescribed periodicity.
- The bank failed to update KYC of its customers as per prescribed periodicity.
- The bank breached the interbank (counterparty) exposure limit.
Static Current Affairs related to RBI for upcoming exams
- Establishment of Reserve Bank of India (RBI): 1 April 1935
- Headquarters of RBI: Mumbai, Maharashtra, India
- Governor of RBI: Shaktikanta Das, IAS
- Deputy Governor of RBI: M. Rajeshwar Rao, Swaminathan J, T. Rabi Sankar & Dr. M.D. Patra
- Ownership of RBI: Ministry of Finance , Government of India
Current Policy Rates
- Policy Repo Rate: 6.50%
- Reverse Repo Rate: 6.25%
- Marginal Standing Facility Rate: 6.75%
- Bank Rate: 6.75%
Current Reserve Ratio
- CRR: 4.50%
- SLR: 18.00%
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