Reserve Bank of India imposes monetary penalty on UCO Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹38.60 lakh (Rupees Thirty Eight Lakh Sixty Thousand only) on UCO Bank (the bank) for non-compliance with certain directions issued by RBI on ‘Periodicity of payment of interest on savings deposits’, ‘Locker Rent’ and ‘Credit Information Reporting in respect of Self Help Group (SHG) members’.

The penalty was imposed because:

• The bank did not pay any interest on certain Savings Bank Deposit accounts;
• The bank did not report credit related Self Help Group member level data to Credit Information Companies; and
• The bank did not refund the proportionate amount of advance locker rent collected in case of premature surrender of locker by certain customers.

Due to these non-compliances, the RBI has imposed a penalty on UCO Bank.