Case Brief
What Happened
By an order dated September 25, 2025, RBI imposed a monetary penalty of ₹50,000 on The Nilambur Co-operative Urban Bank Limited, Kerala. The action followed a statutory inspection and a show-cause process, and RBI concluded that the bank had not complied with directions on ‘Co-operative Banks - Interest Rate on Deposits’ by offering higher interest rates on Non-Resident (External) rupee deposits than on corresponding domestic term deposits. The penalty was imposed under the Banking Regulation Act, 1949.