Case Brief
RBI, by an order dated November 06, 2025, imposed a monetary penalty of ₹1.50 lakh on The Karaikudi Co-operative Town Bank Limited, Tamil Nadu. The penalty was levied after RBI’s statutory inspection and subsequent show-cause process found sustained charges of non-compliance with directions on prudential norms on capital adequacy and KYC. RBI noted that the bank allowed refund of share capital despite CRAR being below the regulatory minimum, sanctioned loans without following the share-linking-to-borrowings norm while CRAR was below minimum, and failed to upload KYC records to CKYCR within the prescribed timeline.
Action Snapshot
- Primary Impact
- Fine: Rs 1.50 L
- Entity Type
- Co-operative bank
- Location
- Karaikudi, Tamil Nadu