RBI imposes Rs 1 lakh penalty on Lucknow-based co-op bank

The Reserve Bank on Wednesday said it has imposed a penalty of Rs 1 lakh on UP Postal Primary Co-operative Bank, Lucknow for violation of norms regarding shifting of its branch.

The RBI had issued a show-cause notice to the bank, in response to which the lender submitted a written reply.

After considering the facts of the case and the bank's reply in the matter and personal hearing, the Reserve Bank of India (RBI) came to the conclusion that the violation was substantiated and warranted imposition of penalty.

The Rs 1 lakh penalty has been imposed on the co-operative bank "for violation of RBI Instructions/Guidelines for shifting of its branch without obtaining prior approval from RBI", the central bank said.