RBI imposes monetary penalty on The Purasawalkam Co-operative Bank Limited, Tamil Nadu

Case Brief

By order dated August 19, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on The Purasawalkam Co-operative Bank Limited, Tamil Nadu. The action followed a statutory inspection as of March 31, 2024 and subsequent show-cause proceedings. RBI found the bank had violated directions on prudential norms for capital adequacy and specific Supervisory Action Framework directions, including permitting refund of share capital despite CRAR being below the regulatory minimum and failing to reduce the single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit.