RBI imposes Rs 2.68 cr on UCO Bank

Aug 30, 2024

Synopsis
The Reserve Bank of India has levied penalties on two banks: Rs 2.68 crore on UCO Bank for violating rules on current accounts, interest on deposits, and fraud classification, and Rs 2.1 lakh on Cent Bank Home Finance Ltd for not complying with KYC regulations. These penalties underline regulatory compliance without affecting the validity of customer transactions.

Reserve Bank of India on Friday said it has imposed a penalty of Rs 2.68 crore on UCO Bank for contravention of certain provisions, including on opening of current accounts, interest rate on deposits and frauds classification. The RBI has also imposed a penalty of Rs 2.1 lakh on Cent Bank Home Finance Ltd for non-compliance with certain provisions of Know Your Customer (KYC) directions.

In both cases, the central bank said penalties are based on regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.

[The Economic Times]