RBI imposes monetary penalty on Mukkuperi Co-operative Urban Bank Limited, Tamil Nadu

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.75 lakh on Mukkuperi Co-operative Urban Bank Limited by order dated January 03, 2025. RBI said the bank had not complied with directions issued under the Supervisory Action Framework (SAF), had sanctioned loans to directors and related parties, and had failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection and a show-cause process.