Case Brief
RBI, by order dated February 23, 2026, imposed a monetary penalty of Rs 50,000 on The Prakasapuram Co-operative Urban Bank Limited, Tamil Nadu. The penalty followed a statutory inspection and a show-cause process after RBI found that the bank had paid dividend from accumulated profits of previous years, contrary to RBI directions on declaration of dividend by urban co-operative banks. RBI imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Tamil Nadu
- Order Date