Case Brief
What Happened
RBI imposed a monetary penalty of Rs 38.60 lakh on UCO Bank by order dated February 16, 2026. The penalty followed supervisory inspection findings that the bank had not complied with RBI directions on periodicity of payment of interest on savings deposits, locker rent, and credit information reporting in respect of Self Help Group members. After considering the bank's reply and additional submissions, RBI sustained charges that the bank did not pay interest on certain savings bank deposit accounts, did not report credit-related SHG member-level data to Credit Information Companies, and did not refund proportionate advance locker rent in cases of premature locker surrender. The penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.