The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 13,000 on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha, for non-compliance with regulatory directions. The order, dated December 9, 2025, cites violations of RBI’s Supervisory Action Framework (SAF) and directions relating to mandatory membership of Credit Information Companies (CICs) by co-operative banks.
The penalty has been imposed under the powers vested in RBI through Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.
RBI had carried out a statutory inspection of the bank with reference to its financial position as on March 31, 2025. Based on inspection findings and subsequent supervisory correspondence, the bank was issued a notice asking why a penalty should not be imposed for failure to comply with the applicable directions. After reviewing the bank’s written response and oral submissions during the personal hearing, RBI concluded that key violations were established.
According to RBI, the bank had incurred capital expenditure without prior approval in breach of SAF conditions and had also failed to submit credit information of its customers to all four CICs, as mandated.
