Case Brief
By order dated October 22, 2025, RBI imposed a monetary penalty of Rs 50,000 on The Arantangi Co-operative Town Bank Limited, Tamil Nadu. The bank was found to have paid dividend from accumulated profits of previous years, in breach of RBI directions on 'Declaration of dividend by UCBs'. 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 notice, reply, and oral hearing.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Tamil Nadu
- Order Date