The Reserve Bank of India (RBI) has imposed monetary penalties on three urban co-operative banks for non-compliance with key regulatory directions, following statutory inspections conducted with reference to their financial position as on March 31, 2025.
Agartala Co-operative Urban Bank Limited, Tripura, and The Jeypore Co-operative Urban Bank Limited, Odisha, have each been fined Rs 2 lakh for breaching RBI’s prudential norms on inter-bank exposure.
The violations included exceeding the prescribed gross inter-bank exposure limit and the inter-bank counterparty limit, contrary to RBI directions on ‘Exposure Norms and Statutory/Other Restrictions-UCBs’. The penalties were imposed under provisions of the Banking Regulation Act, 1949.
Separately, Daund Urban Co-operative Bank Limited, Maharashtra, has been penalised Rs 5,000 for failing to submit customer credit information to Credit Information Companies (CICs), in violation of RBI guidelines on credit information reporting. The penalty was imposed under the Credit Information Companies (Regulation) Act, 2005.
RBI clarified that the penalties are based solely on regulatory compliance deficiencies and do not reflect on the validity of customer transactions. The actions are without prejudice to any further supervisory measures.