Subsidiary General Ledger (SGL) | RBI fines UCO Bank
Source | The Hindu
GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Reserve Bank of India has imposed a penalty on UCO Bank for bouncing of Subsidiary General Ledger (SGL) forms.
Also Read: NBFCs seeks RBI Permission to use Reserves
What is this issue?
- Public sector lender UCO Bank said the Reserve Bank has imposed a penalty of ₹5 lakh for violating norms on government bond holding.
- The Reserve Bank of India has imposed a penalty of ₹5 lakh on UCO Bank for bouncing of Subsidiary General Ledger (SGL) forms..
Also Read: Public Financial Management System
What you need to know about Subsidiary General Ledger account?
- SGL account denotes Subsidiary General Ledger which is maintained with Reserve Bank of India for holding Government Securities and T-Bills in paperless form (or what in retail is called the demat account for G-secs!). The account is used for facilitating delivery and payment trades.
- UCO Bank shares were trading 1.26% down at ₹11.78 a piece on the BSE.
- In exercise of powers conferred by Section 4 of Government Securities Act 2006, Reserve Bank of India had notified the conditions applicable for opening and maintaining of Subsidiary General Ledger (SGL) Accounts and Constituents’ Subsidiary General Ledger (CSGL).
PRELIMS Background Bites
About UCO Bank
- UCO Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is a major government-owned commercial bank of India.
- G. D. Birla, an eminent Indian industrialist, during the Quit India movement of 1942, conceived the idea of organising a commercial bank with Indian capital and management, and the United Commercial Bank Limited was incorporated to give shape to that idea.
- The bank was started with Kolkata as its head office with an issued capital of Rs 2 crores and a paid-up capital of Rs 1 crore.
- During FY 2013–14, its total business was Rs 4.55 lakh crore.
- UCO Bank was ranked 294th among India’s most trusted brands according to the Brand Trust Report 2014.
- It also has two overseas branches in Singapore and Hong Kong.
- UCO Bank’s headquarters is on BTM Sarani, Kolkata.
- The motto UCO Bank is “Honours your Trust”.
- The Government of India nationalized United Commercial Bank on 19 July 1969.
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