RBI has vide its press release dated 12th March, 2021 imposed a monetary penalty of Rs.100,000 on United India Co-operative Bank Ltd., Nagina.
This penalty was imposed for non compliance with the provisions of section 27 of the Banking Regulation Act, 1949 read with section 56 of the same act.
Section 27 of the BR Act, pertains to submission of monthly returns by the bank. RBI has not clearly specified which forms and returns were not filed, for how long and the rationale for fixing this penalty. It would be better for compliance management if the RBI were to be more expansive in their press releases regarding non compliances by banks, financial institutions, NBFCs etc. instead of issuing such cryptic notes.