Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
5 Feb 2026
Case Brief
By an order dated February 03, 2026, RBI imposed a monetary penalty of ₹2 lakh on The Jeypore Co-operative Urban Bank Limited, Odisha. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2025, and a show-cause process in which RBI found that the bank had failed to comply with directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’. Specifically, the bank breached the prudential inter-bank (gross) exposure limit and the prudential inter-bank counter-party limit. RBI said the action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and supervisory findings showed non-compliance with RBI directions on ‘Exposure Norms and Statutory/Other Restrictions - UCBs’. The sustained charge was that the bank had breached the prudential inter-bank (gross) exposure limit and the prudential inter-bank counter-party limit, leading RBI to act under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the financial penalty and any reputational consequences from the supervisory finding. RBI also noted that the penalty is without prejudice to any other action that may be initiated against the bank, so further supervisory or enforcement steps remain possible.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 3 Feb 2026
- Effective From
- 3 Feb 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank