The Reserve Bank of India has, in exercise of powers vested in it under the provisions of Section 47 A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) (hereinafter referred to as ‘the Act’) imposed a monetary penalty of Rs. 5.00 lakh (Rupees Five lakh only) on the United Commercial Co-operative Bank Limited, Kanpur, Uttar Pradesh (hereinafter referred to as "the bank") for the following violations:

I.   Non-submission of Off-Site Surveillance (OSS) returns since April 2012 - Violation of Section 27 of the Act.

II.  Non-preparation/ Non-submission/ Non publication of the Balance Sheet, Profit & Loss account and Auditor’s report, for the financial year ended March 31, 2012 – Violation of Section 29 and 31 of the Act, read with Rule 10 of Banking Regulation (Co-operative Societies) Rules, 1966.

The Reserve Bank of India had issued a Show Cause Notice (SCN) to the bank. However, the bank had neither responded to the SCN nor submitted the returns/ audited statements. Accordingly, it was presumed that the bank had nothing to say in the matter and the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.

 Sucheta Vazkar

Manager

Regulatory penalty for failure to file supervisory returns and publish audited financial statements, following an unanswered show cause notice. A regulator imposed a monetary penalty on a cooperative bank for failing to submit Off Site Surveillance returns and for failing to prepare, submit and publish the Balance Sheet, Profit & Loss account and Auditor's report for the relevant financial year; a Show Cause Notice was issued but not answered, and the regulator treated the absence of response and the non compliance as substantiated, proceeding to enforcement under the statutory supervisory framework.