Reserve Bank put rupees 1,00,000 penalty on Lucknow-based co-op bank

10-11th April 2019. The Reserve Bank of India (RBI) put a monetary penalty of rupees 1,00,000 on Lucknow-based U.P. Postal Primary Co-operative Bank, for violation of RBI Instructions/ Guidelines for shifting of its branch without obtaining prior approval from RBI.
The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank submitted a written reply.
After considering the facts of the case, and the bank’s reply in the matter and personal hearing, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty.

Published On : 11 Apr 2019