India, Oct. 27 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on The Shevapet Urban Co-operative Bank Limited, Tamil Nadu, for non-compliance with RBI's directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs'.
The penalty, announced through an order dated October 23, 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, based on the bank's financial position as of March 31, 2024, found that the bank had sanctioned loans exceeding the prescribed regulatory limits to certain nominal members, thereby violating exposure norms.
After reviewing the bank's written explanation and oral submissions, the RBI conclude...