MUMBAI (TIP): RBI has imposed Rs 1 crore penalty on UCO Bank for flouting its instructions relating to opening of current accounts and providing bill discounting facilities to account holders without any borrowing facility with the bank resulting in “siphoning off of funds”.

RBI had carried out an inspection of books of accounts, internal control, compliance system and processes at one of the UCO bank’s branches in May-June of 2015. On the basis of findings, a show-cause notice was issued to the bank for violation of certain regulations and instructions.