RBI imposes monetary penalty on The Utkal Cooperative Bank Limited, Bhubaneswar

Case Brief

The RBI, by order dated August 05, 2025, imposed a penalty of Rs 2.53 lakh on The Utkal Cooperative Bank Limited, Bhubaneswar. The action followed a supervisory inspection with reference to the bank’s financial position as on March 31, 2024, and a notice-to-show-cause process. RBI sustained charges that the bank incurred capital expenditure without prior approval in breach of SAF directions, did not submit customer credit information to three CICs, failed to upload KYC records to CKYCR, and did not implement periodic review of risk categorisation of accounts at least once every six months. The release states the penalty is based on regulatory non-compliance and is without prejudice to any other action RBI may initiate.