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The Pattukottai Co-operative Urban Bank Limited

Co-operative bankPattukottai, Tamil Nadu

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 1.50 L

Monetary penalty · Fresh imposition

S1

Published by RBI

8 Dec 2025

Case Brief

RBI, by order dated December 5, 2025, imposed a monetary penalty of ₹1.50 lakh on The Pattukottai Co-operative Urban Bank Limited, Tamil Nadu. The bank was found to have contravened Section 17 of the Banking Regulation Act, 1949 and to have failed to comply with RBI directions on exposure norms/statutory restrictions for UCBs and KYC requirements. The specific lapses cited were failure to transfer 20% of net profit for FY 2023-24 to the Statutory Reserve, sanctioning loans beyond the prescribed regulatory limit to certain nominal members, and not uploading KYC records to CKYCR within the prescribed timeline. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

Why RBI Acted

Capital & exposure normsKYC / AMLReporting & disclosure

Following a statutory inspection of the bank with reference to its financial position as on March 31, 2024, RBI found sustained charges that the bank contravened Section 17 of the BR Act and failed to comply with RBI directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs' and 'Know Your Customer (KYC)'. Specifically, the bank failed to transfer 20% of its net profit for FY 2023-24 to the Statutory Reserve, sanctioned loans in excess of the prescribed regulatory limit to certain nominal members, and failed to upload customers' KYC records onto the Central KYC Records Registry within the prescribed timeline. RBI imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

Operating Impact

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI. The order does not itself impose an operating restriction, but RBI noted it is without prejudice to any other action that may be initiated later.

Regulatory Basis

  • Section 17 of the Banking Regulation Act, 1949
  • Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act

Action Facts

Primary Impact
Fine: Rs 1.50 L
Order Date
5 Dec 2025
Effective From
5 Dec 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank