The Reserve Bank of India has imposed a monetary penalty of ₹20.00 lakh (Rupees Twenty lakh only) on the Hubli Urban Co-operative Bank Ltd., Hubli, Karnataka, 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) for violation of Reserve Bank of India’s instructions for irregularities in cheque discounting, overdrawal in OD loan accounts etc.

The Reserve Bank of India had issued a Show Cause Notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were established beyond doubt and warranted imposition of the penalty.

Ajit Prasad
Assistant General Manager

Press Release: 2014-2015/2714