RBI imposes monetary penalty on The Nicholson Co-operative Town Bank Ltd., Tamil Nadu

Case Brief

By an order dated May 06, 2025, RBI imposed a monetary penalty on The Nicholson Co-operative Town Bank Ltd., Tamil Nadu under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI said the bank had sanctioned certain loans to directors/related interests in contravention of its directions and had also failed to upload certain customers' KYC records to CKYCR within the prescribed timeline. The penalty followed a statutory inspection and show-cause process, and RBI noted that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction.