The Reserve Bank has imposed a penalty of Rs 20 lakh on Karnataka's Hubli Urban Co-operative Bank Ltd for irregularities in cheque discounting. "The Reserve Bank of India has imposed a monetary penalty of Rs 20 lakh on Hubli Urban Co-operative Bank Ltd... for violation of RBI's instructions for irregularities in cheque discounting, overdrawal in OD loan accounts," the central bank said in a notification. The RBI had issued a showcause notice to Hubli Urban Co-operative Bank in response to which the latter submitted a written reply.