RBI fines Imperial Urban Cooperative Bank for Breaking Rules

RBI imposes monetary penalty on Imperial Urban Co-operative Bank Ltd.

The Reserve Bank of India (RBI) said on March 20 that it had fined Imperial Urban Cooperative Bank Rs 1 lakh for breaching specific banking regulations.

RBI inspections revealed that the bank has not complied with RBI directives prohibiting the sanction/renewal of loans and advances to directors and their relatives.

The central bank then notified the bank advising it to explain why it should not be fined for non-compliance with the instructions, the central bank said in a press release.

After considering the bank’s replies, the RBI concluded that the allegations mentioned above of non-compliance with RBI instructions were substantiated, and the fine was justified.

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