MUMBAI: The Reserve Bank has imposed a penalty of Rs 20 lakh on Karnataka's Hubli Urban Co-operative Bank Ltd for irregularities in cheque discounting.
"The Reserve Bank of India has imposed a monetary penalty of Rs 20 lakh on Hubli Urban Co-operative Bank Ltd... for violation of RBI's instructions for irregularities in cheque discounting, overdrawal in OD loan accounts," the central bank said in a notification.
The RBI had issued a showcause notice to Hubli Urban Co-operative Bank in response to which the latter submitted a written reply.
After considering the facts of the case and the bank's reply in the matter, the RBI came to the conclusion that violations were established beyond doubt and warranted imposition of the penalty, it added.