The Karaikudi Co-operative Town Bank Limited

RBI has imposed a monetary penalty of ₹1.50 lakh on The Karaikudi Co-operative Town Bank Limited, Tamil Nadu. The action follows non-compliance with prudential capital adequacy and KYC directions.

The bank must absorb the monetary penalty and remain compliant with RBI’s prudential capital adequacy and KYC directions going forward. The release also makes clear that the penalty does not preclude any other action RBI may initiate later.

• Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949

RBI imposed a ₹50,000 penalty on The Karaikudi Co-operative Town Bank Ltd., Tamil Nadu. The bank was found to have sanctioned loans in breach of SAF directions on exposure limits and collateral requirements.

The bank must absorb the monetary penalty and may still face any other action RBI chooses to initiate separately. The release does not indicate a direct operational restriction on customers, but it underscores stricter compliance expectations around lending limits and collateralization.

• Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949