India, June 27 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Chittoor Co-operative Town Bank Ltd., Andhra Pradesh, for non-compliance with specific regulatory directions related to exposure norms and Know Your Customer (KYC) requirements. The penalty was issued through an order dated June 23, 2025, under the authority granted by Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
This action follows a statutory inspection conducted by the RBI based on the bank's financial position as of March 31, 2024. The inspection revealed deviations from RBI guidelines, prompting the issuance of a show-cause notice to the bank. After reviewing the bank's response and oral su...