Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.50 lakh on The Tiruppur Co-operative Urban Bank Ltd., Tamil Nadu, by order dated February 07, 2025. RBI found that the bank had not complied with certain directions on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘Know Your Customer (KYC)’, specifically that it failed to observe the prudential inter-bank gross exposure limit and did not upload customer KYC records to CKYCR within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.