Case Brief
RBI, by order dated March 26, 2025, imposed a monetary penalty of ₹1.00 lakh on The Sholinghur Co-operative Urban Bank Limited, Vellore, Tamil Nadu. The penalty followed supervisory findings from a statutory inspection as of March 31, 2023, which concluded that the bank had violated RBI directions on exposure norms/statutory restrictions for UCBs and KYC compliance. RBI said the bank sanctioned loans to nominal members beyond the prescribed regulatory limit and failed to upload 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 1.00 L
- Entity Type
- Co-operative bank
- Location
- Vellore, Tamil Nadu