The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees Five lakh only) on the Imperial Urban Co-operative Bank Ltd, Faizabad, Uttar Pradesh, in exercise of the 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) for the following violations:

1. Incorrect reporting of information in the Form I relating to CRR/ SLR and incorrect computation of DTL.
2. Violation of KYC guidelines i.e., non-preparation of risk profiles of all customers and non-fixing of threshold limit.
3. Violation of Prudential Inter-bank (Gross) Exposure Limit and Prudential Inter-bank Counter Party Limit.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted its written reply. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty.

P. B. Lombar

Assistant Manager

Monetary penalty imposed for regulatory non-compliance after substantiated reporting, KYC and inter-bank exposure violations, following show-cause. A regulatory monetary sanction was imposed on Imperial Urban Co-operative Bank Ltd. for incorrect reporting in Form I relating to CRR/SLR and erroneous computation of DTL; failures in KYC compliance including lack of customer risk profiles and unfixed threshold limits; and breaches of prudential inter bank gross exposure and counter party limits, following a show cause notice and consideration of the bank's written reply.