RBI imposes monetary penalty on The Bapatla Co-operative Urban Bank Ltd., Andhra Pradesh

Case Brief

By an order dated December 04, 2024, RBI imposed a monetary penalty of ₹2.00 lakh on The Bapatla Co-operative Urban Bank Ltd., Andhra Pradesh. The penalty followed a statutory inspection and subsequent supervisory findings that the bank had sanctioned loans to its directors and their relatives, breached prudential inter-bank and counterparty exposure limits, and failed to upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline. RBI said the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.