The Reserve Bank of India (RBI) has imposed monetary penalties on five cooperative banks across Tamil Nadu and Karnataka for non-compliance with regulatory directions.
According to RBI orders dated October 22 and 23, 2025, The Arantangi Co-operative Town Bank Limited, Tamil Nadu was fined Rs 50,000 for not adhering to guidelines on the declaration of dividend by Urban Cooperative Banks (UCBs).
Similarly, Kamuthi Co-operative Urban Bank Ltd., Tamil Nadu faced a penalty of Rs 50,000 for violations related to Know Your Customer (KYC) norms.
The Shevapet Urban Co-operative Bank Limited, Tamil Nadu was also levied Rs 50,000 for failing to comply with exposure norms and statutory or other restrictions applicable to UCBs.
Meanwhile, The Valparai Co-operative Urban Bank Ltd., Coimbatore, Tamil Nadu was penalized Rs 1 lakh for KYC-related non-compliance.
In Karnataka, The Tumkur District Co-operative Central Bank Limited was imposed a penalty of Rs 1 lakh for contravening provisions under Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The RBI emphasized that these penalties were imposed in exercise of its powers under the Banking Regulation Act, 1949, underlining its commitment to ensuring compliance and strengthening governance in the cooperative banking sector.
