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RBI penalises Karad Urban Co-op Bank for violating norms

The Karad Urban Co-op Bank is penalised for shifting its location in Sangli, Maharashtra without RBI permission

July 17, 2012 5:04 IST | India Infoline News Service
On 16th July, the Reserve Bank of India (RBI) imposed a penalty of Rs. 5 lakh on Karad Urban Co-operative Bank in Maharashtra for violating guidelines on shifting of branch without the regulator’s approval.

“The bank had violated RBI instructions... by shifting its Market Yard Branch, Sangli from 94/A, Market Yard, Sangli-416416 to Rajratna Heights, Miraj Sangli Service Road, Chandani Chowk Corner, Sangali-416416… which involved change in municipal ward number 35 to 50, for which no prior permission was obtained from RBI,” the central bank said in a circular.

The Karad Urban Co-operative Bank has been penalised for shifting its location in Sangli, Maharashtra without RBI permission, the circular said.

According to RBI guidelines, urban co-operative banks are required to take prior approval from it for shifting to a different locality or municipal ward.

RBI had issued a show-cause notice to the Karad Urban Co-operative Bank, in response to which the bank submitted a written reply.

"After considering facts in the case and the bank's reply in the matter, the RBI came to the conclusion that the violation was substantiated and warranted imposition of the penalty," RBI said.

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