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

Case Brief

By an order dated September 29, 2025, RBI imposed a monetary penalty of ₹1 lakh on The Vaniyambadi Town Co-operative Bank Limited, Tamil Nadu. The penalty was imposed after supervisory inspection findings showed non-compliance with RBI directions under the Supervisory Action Framework (SAF) and KYC requirements. RBI said the bank had sanctioned fresh loans beyond single-borrower exposure limits, extended fresh loans carrying risk weights above 100%, and failed to upload customer KYC records to CKYCR within the prescribed timeline. RBI stated that the penalty is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement with customers.