The Reserve Bank of India has imposed, by an order dated December 11, 2020, a monetary penalty of Rs 50.00 lakh on the Urban Co-operative Bank Ltd. No. 1758, Perinthalmanna in Kerala.
The UCB was fined for non-compliance with directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms and on Management of Advances-UCBs.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of laws on the failure of the bank to adhere to the aforesaid directions issued thereon by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, clarifies RBI.