Mukkuperi Co-operative Urban Bank Limited

RBI imposed a monetary penalty on Mukkuperi Co-operative Urban Bank Limited for non-compliance with specific directions issued under the Supervisory Action Framework (SAF), directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, and KYC requirements. RBI found that the bank increased exposure to a sector where NPAs were high, sanctioned director-related loans, and failed to upload customer KYC records to the Central KYC Records Registry 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.

The bank must bear the monetary penalty, and the order serves as a regulatory censure for its past compliance failures. There is no stated withdrawal of business rights, but the penalty signals ongoing supervisory scrutiny and possible further action if similar deficiencies continue. Customers are not said to be directly affected by this order, beyond the compliance lapses identified by RBI.