India, Dec. 8 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 lakh on The Pattukottai Co-operative Urban Bank Limited, Tamil Nadu, for violating provisions of the Banking Regulation Act, 1949, and non-compliance with directions on exposure norms and KYC requirements. The order was issued on December 5, 2025.
The penalty has been levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The action follows a statutory inspection of the bank as of March 31, 2024. After reviewing supervisory findings and the bank's submissions, RBI observed the following lapses:
The bank failed to transfer 20% of its net profit for FY 2023–24 to the Statutory Reserve.
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