RBI slaps Rs 2 crore penalty on UCO Bank for non-compliance

Kolkata: UCO Bank on Tuesday said the Reserve Bank of India (RBI) has imposed Rs 2 crore penalty on it for non-compliance of instructions issued by the apex bank on collection of account payee instruments and those on “frauds-classification and reporting”. “We inform that RBI imposed a penalty of Rs 2 crore for non-compliance of instructions issued by RBI on collection of account payee instruments and those on frauds-classification and reporting,” the lender said in a regulatory filing on Tuesday.

Notably, the city-based bank had reported Rs 1,136.44 crore net loss for the quarter ended in September 2018 against a net loss of Rs 622.56 crore for the same period a year ago, as its provision to cover bad loans increased. The bank, which is under the prompt corrective action (PCA) framework of RBI, had reported a net loss of Rs 633.88 crore for the first quarter of this financial year. The state-run lender had recently said its board would consider the third quarter results of the current financial year on February 8.

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