RBI imposes monetary penalty on The Tiruchengode Co-operative Urban Bank Ltd (No.8994), Tiruchengode, Tamil Nadu

Case Brief

By an order dated June 24, 2022, RBI imposed a monetary penalty of ₹10.00 lakh on The Tiruchengode Co-operative Urban Bank Ltd (No.8994), Tiruchengode, Tamil Nadu. The penalty followed an inspection that found non-adherence to directions relating to Exposure Norms and Statutory/Other Restrictions – UCBs and Know Your Customer (KYC) Guidelines – Primary (Urban) Co-operative Banks. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and concluded that the violations were substantiated, warranting the penalty under the Banking Regulation Act, 1949 (AACS).