1. The Arakonam Co-operative Urban Bank Limited, Tamil Nadu Penalty Amount ₹2.50 Lakh Major Violation Order Date December 15, 2025 Statutory Inspection Reference Date: March 31, 2025 Key Violations Failure to transfer 20% of net profit to Statutory Reserve (FY 2022-23 to 2024-25). Sanctioning loans to nominal members in excess of regulatory limits. Exceeding regulatory […]
Penalty Snapshot: The Kovilpatti Co-operative Urban Bank Ltd Penalty Amount ₹1,00,000 Violation Area Capital Adequacy (CRAR) Inspection Date March 31, 2025 The Violation The bank refunded share capital to members and sanctioned new loans despite its CRAR being below the regulatory minimum. This violated RBI’s prudential norms on linking shareholding to borrowing. Root Cause Analysis
1. Key Incident Details The Reserve Bank of India (RBI) has imposed a monetary penalty based on deficiencies in regulatory compliance observed during the statutory inspection with reference to the financial position as on March 31, 2025. Entity Name The Co-operative Urban Bank Limited, Parlakhemundi, Odisha Penalty Amount ₹13,000 (Thirteen Thousand Rupees) Order Date December
1. The Pattukottai Co-operative Urban Bank Limited, Tamil Nadu Penalty Amount ₹1.50 Lakh Order Date Dec 05, 2025 Reference Position March 31, 2024 Regulatory Deficiencies • Reserve Management: Failure to transfer 20% of net profit (FY 2023-24) to the Statutory Reserve (Contravention of Sec 17, BR Act). • Exposure Norms: Sanctioned loans to “nominal members”
Executive Summary: The Reserve Bank of India has imposed a monetary penalty on Jammu and Kashmir Bank Limited for contraventions related to Grievance Redressal (Internal Ombudsman), Customer Service, DEA Fund transfers, and KYC norms (V-CIP). Penalty Amount ₹99.30 Lakh Bank Entity J&K Bank Ltd. Statutory Basis Sec 47A(1)(c) / Sec 46(4)(i) BR Act Inspection Date
Bansal Credits Limited Penalty: ₹6.20 Lakh Key Regulatory Details Order Date December 02, 2025 Inspection Date March 31, 2024 Regulatory Act Section 58G(1)(b) read with 58B(5)(aa) of RBI Act, 1934 Reason for Penalty 1. Failure to put in place a system for alerts for suspicious transactions. 2. Failure to upload KYC records to the Central
The Arni Co-operative Town Bank Limited Penalty: ₹2.00 Lakh Location Tamil Nadu Order Date Nov 27, 2025 Inspection Position March 31, 2024 Regulatory Act Banking Regulation Act, 1949 (Section 47A(1)(c)) Key Non-Compliance Details Refund of Share Capital: Allowed refund to members despite CRAR being below regulatory minimum. Loan Sanctions (Share Linking): Sanctioned loans without adhering
1. HDFC Bank Limited Key Penalty Details Penalty Amount ₹ 91.00 Lakh Date of Order November 18, 2025 Regulatory Violation Contravention of Banking Regulation Act (Section 19(1)(a) & 6(1)) and specific RBI directions. Specific Charges Adopting multiple benchmarks within the same loan category. Wholly owned subsidiary undertook non-permissible business. Outsourcing of KYC compliance determination to
1. The Fatehpur District Co-operative Bank Limited, Uttar Pradesh Penalty Amount ₹2.00 Lakh Order Date November 20, 2025 Regulatory Basis Non-compliance with RBI directions on ‘Know Your Customer (KYC)’. 🚩 Key Deficiencies Failure to put in place a system for periodic review of risk categorization of accounts (required at least once every six months). Failure
1. Shri Basaveshwar Sahakari Bank Niyamitha, Bagalkot Penalty Amount: ₹1.00 Lakh Violation Category: IRAC Norms & Interest Rates on Deposits Key Details The bank failed to classify certain loan accounts as Non-Performing Assets (NPA) in accordance with Income Recognition and Asset Classification (IRAC) norms. Additionally, it opened savings deposit accounts for entities that were ineligible
