India, Feb. 5 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on The Jeypore Co-operative Urban Bank Limited, Odisha, for non-compliance with regulatory directions related to 'Exposure Norms and Statutory/Other Restrictions' applicable to urban co-operative banks.
The penalty, imposed through an order dated February 3, 2026, was levied under provisions of the Banking Regulation Act, 1949.
Following a statutory inspection based on the bank's financial position as of March 31, 2025, RBI observed compliance lapses and issued a show-cause notice. After reviewing the bank's response and oral submissions, the central bank concluded that the lender had breached prudential inter-bank (gross) exposure limits as well ...