Rbi Warns Ucbs Of Penal Provisions Over Lapses

The Reserve Bank of India (RBI) has warned that it will invoke penal provisions under the Banking Regulation Act, 1949 (as applicable to co-operative societies) if urban co-operative banks (UCBs) fail to remove irregularities pointed out in the inspection report within a maximum period of up to four months.

This RBI action is in line with the Joint Parliamentary Committee (which enquired into the recent stock market scam) recommendations to the effect that