The Reserve Bank of India (RBI) has imposed, a monetary penalty of Rs 50 lakh on The Urban Co-operative Bank Limited, No. 1758, Perinthalmanna, Malappuram District, Kerala.
This penalty has been imposed, taking into account the failure of the bank to adhere to the aforesaid directions issued thereon by RBI.
As the bank failed to comply with directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms and on Management of Advances-UCBs.
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.