India, Nov. 13 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 lakh on The Mettupalayam Co-operative Urban Bank Limited, Tamil Nadu, for violating regulatory directions related to loans and advances to directors and exposure norms for urban co-operative banks (UCBs).
The penalty, announced through an order dated November 11, 2025, was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
An RBI inspection of the bank's financials as of March 31, 2025, revealed instances of non-compliance, including sanctioning director-related loans and granting loans to nominal members beyond prescribed limits.
RBI clarified that the action was based on deficiencies in regulat...