SUBSIDIARY GENERAL LEDGER

Subsidiary General Ledger (SGL) | RBI fines UCO Bank

Reserve Bank of India has imposed a penalty on UCO Bank for bouncing of Subsidiary General Ledger (SGL) forms.

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.

SUBSIDIARY GENERAL LEDGER


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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).


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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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