India, Dec. 19 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.50 lakh on The Arakonam Co-operative Urban Bank Limited, Tamil Nadu, for contravention of provisions of the Banking Regulation Act, 1949 and non-compliance with RBI directions on exposure norms, management of advances and Know Your Customer (KYC) requirements.
The penalty was imposed through an order dated December 15, 2025, under powers conferred by Section 47A of the Banking Regulation Act read with Sections 46 and 56.
RBI said the action followed a statutory inspection of the bank conducted with reference to its financial position as on March 31, 2025. Based on supervisory findings, a show-cause notice was issued to the bank and, after considering ...