Case Brief
RBI, by an order dated August 19, 2025, imposed a monetary penalty of ₹50,000 on The Ponani Co-operative Urban Bank Limited, Kerala. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and a show-cause process. RBI found that the bank had failed to comply with directions on ‘Co-operative Banks - Interest Rate on Deposits’ by opening certain savings deposit accounts in the name of ineligible entities. 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 50,000
- Entity Type
- Co-operative bank
- Location
- Kerala