India, Oct. 28 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on The Arantangi Co-operative Town Bank Limited, Tamil Nadu, for non-compliance with its directions on "Declaration of Dividend by Urban Co-operative Banks (UCBs)." The penalty was imposed through an order dated October 22, 2025, under the provisions of 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 based on its financial position as of March 31, 2024. Upon identifying instances of non-compliance, RBI issued a show-cause notice to the bank. After reviewing the bank's response and oral submissions, the central bank found that the institution had paid d...