India, Dec. 2 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on The Arni Co-operative Town Bank Limited, Tamil Nadu, for non-compliance with several regulatory directions pertaining to capital adequacy, exposure norms, and gold loan guidelines for Urban Co-operative Banks (UCBs).
The penalty, issued through an order dated November 27, 2025, was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The action follows an RBI inspection of the bank's financial position as of March 31, 2024. Based on supervisory findings and subsequent correspondence, the bank was issued a show-cause notice. After reviewing the bank's response and hearing its submissions, the RB...