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

Case Brief

RBI imposed a monetary penalty on The Salem Urban Co-operative Bank Limited, Tamil Nadu by order dated December 26, 2025. The penalty was issued under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 for non-compliance with RBI directions on the Framework for Compromise Settlements and Technical Write-offs. RBI found that the bank sanctioned non-agricultural loans to members who had previously availed compromise settlements without observing the prescribed minimum cooling period.