RBI slaps penalty of ₹15 lakh on Himachal-based Baghat Urban Co-operative Bank for non-adherence

Baghat Urban Co-operative Bank is facing a penalty for non-adherence to RBI directives. This is the second time the central bank has penalized the Solan-based bank in 12 years.

The Reserve Bank of India (RBI) has imposed a monetary penalty of 15 lakh on Himachal Pradesh-based Baghat Urban Co-operative Bank. In an order on Wednesday, the RBI penalized the bank for non-compliance with directions issued by the central bank through a Master Circular on July 01, 2015. Interestingly, this is the second time in 12 years that The Baghat Urban Co-operative Bank has faced a penalty for not following RBI norms. The RBI had last, in August 2009, imposed a penalty of 5 lakh on the bank for violating the central bank's guidelines on non-SLR (non-SLR transactions) transactions.