RBI imposes monetary penalty on The Pondicherry Co-operative Urban Bank Ltd., Puducherry

Case Brief

By an order dated December 6, 2024, RBI imposed a monetary penalty of ₹1.00 lakh on The Pondicherry Co-operative Urban Bank Ltd., Puducherry. The action followed a statutory inspection and subsequent show-cause proceedings, which concluded that the bank had breached RBI directions under the Supervisory Action Framework by sanctioning fresh loans and advances beyond the eligible single-borrower exposure limit and without the required collateral security. RBI also found that the bank failed to upload certain customers’ KYC records to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.