RBI imposes monetary penalty on The Kasaragod Co-operative Town Bank Limited, Kasaragod, Kerala

Case Brief

RBI, by order dated August 07, 2025, imposed a monetary penalty of ₹1 lakh on The Kasaragod Co-operative Town Bank Limited, Kasaragod, Kerala, following a statutory inspection with reference to its financial position as on March 31, 2024. The bank was found to have sanctioned loans and advances to certain connected borrowers beyond the applicable group exposure limit and to have failed to implement certain cyber security control measures and requirements under RBI’s Cyber Security Framework for Primary (Urban) Cooperative Banks. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a show-cause process and hearing.