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

Case Brief

RBI, by order dated December 5, 2025, imposed a monetary penalty of ₹1.50 lakh on The Pattukottai Co-operative Urban Bank Limited, Tamil Nadu. The bank was found to have contravened Section 17 of the Banking Regulation Act, 1949 and to have failed to comply with RBI directions on exposure norms/statutory restrictions for UCBs and KYC requirements. The specific lapses cited were failure to transfer 20% of net profit for FY 2023-24 to the Statutory Reserve, sanctioning loans beyond the prescribed regulatory limit to certain nominal members, and not uploading KYC records to CKYCR within the prescribed timeline. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.