RBI's big action against UCO bank, imposed penalty!!!

The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india, the regulator of the banking sector, has taken major action against the public sector bank UCO Bank. RBI has imposed a fine of Rs 2,68,30,000 on UCO bank for not following the banking Regulation Act 1949 and its instructions. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india has given this information by issuing a press release.

The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india said, as per the order issued on august 26, 2024, it has imposed a penalty of Rs 2,68,30,000 on UCO Bank. According to RBI, this action has been taken against UCO bank for violating the provisions of section 26A of the banking Regulation Act 1949, interest rates on advances, discipline in the bank's current accounts, interest rates on deposits and non-compliance with the directions issued by RBI regarding fraud classification and reporting of commercial banks and selected financial institutions. RBI said that it has imposed this penalty on UCO bank under the powers given to it.

RBI said that after the supervisory investigation of the bank, a notice was also issued to it. The bank was sent a notice and asked why the maximum penalty should not be imposed on it. After the bank's reply to the notice, RBI found that it was justified to impose a penalty, after which monetary penalty was imposed on UCO Bank.

RBI found that UCO bank has failed to benchmark floating rate personal retail loans and loans given to MSMEs with external benchmarks. Current accounts of such people were opened in which the exposure of the banking system was more than Rs 5 crore. Saving deposit accounts were opened in the names of people who were not eligible. Some unclaimed fixed deposit balances were failed to be transferred to the Depositors education and Awareness Fund within three months of the expiry period, after which they remained unclaimed for more than 10 years. Also, the bank failed to report fraud cases to enforcement agencies.

RBI said, this action has been taken due to deficiencies in statutory and regulatory compliance and is not intended to affect the validity of any transaction or agreement made by the bank with its customers. RBI said, imposing monetary penalty will not have any adverse effect on any other action initiated against the bank.