Case Brief
By an order dated February 07, 2025, RBI imposed a monetary penalty on The Salem Urban Co-operative Bank Ltd., Tamil Nadu for non-compliance with directions relating to loans and advances to directors and related interests, exposure norms/statutory restrictions for urban co-operative banks, and KYC compliance. RBI said the bank sanctioned director-related loans, extended unsecured advances beyond the prescribed regulatory limit, and failed to upload customer KYC records to CKYCR within the required timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.75 L
- Entity Type
- Co-operative bank
- Location
- Tamil Nadu, Tamil Nadu