RBI imposes monetary penalty on Ramanagaram Urban Co-operative Bank Limited, Karnataka

The Reserve Bank of India (RBI), through an order dated June 11, 2024, has imposed a monetary penalty of ₹75,000/- on Ramanagaram Urban Co-operative Bank Limited, Karnataka. This penalty was levied for the bank's non-compliance with RBI directions on ‘Exposure Norms & Statutory/Other Restrictions-UCBs’. \r

Imposition of the penalty was made under RBI's powers conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty follows a statutory inspection conducted by RBI based on the bank's financial position as of March 31, 2022. RBI's decision was influenced by findings of non-compliance with prudential inter-bank exposure limits, despite the bank's response and submissions during the proceedings.\r

The penalty does not question the bank's transactions but allows for further actions by RBI if necessary.