RBI imposes monetary penalty on The Co-operative Urban Bank Ltd., Paralakhemundi, Odisha

Case Brief

By an order dated March 13, 2025, RBI imposed a monetary penalty on The Co-operative Urban Bank Ltd., Paralakhemundi, Odisha following a statutory inspection with reference to its financial position as on March 31, 2024. RBI said supervisory findings showed non-compliance with directions on 'Exposure Norms and Statutory / Other Restrictions- UCBs' and 'Membership of Credit Information Companies (CICs) by Co-operative Banks'. After considering the bank's reply and oral submissions, RBI sustained charges that the bank breached prudential inter-bank (gross) and counterparty exposure limits and failed to obtain membership of two CICs. The penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.