Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Kallidaikurichi Co-operative Urban Bank Limited, Tamil Nadu, by order dated November 27, 2025. RBI said the bank failed to comply with directions on prudential norms for capital adequacy applicable to primary urban co-operative banks. After inspection, notice, reply, and oral hearing, RBI sustained the charge that the bank allowed refund of share capital to members despite its CRAR being below the regulatory minimum. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.