Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Aug 2025
Case Brief
RBI, by an order dated August 19, 2025, imposed a monetary penalty of ₹50,000 on The Ponani Co-operative Urban Bank Limited, Kerala. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and a show-cause process. RBI found that the bank had failed to comply with directions on ‘Co-operative Banks - Interest Rate on Deposits’ by opening certain savings deposit accounts in the name of ineligible entities. The penalty was imposed 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 review found non-compliance with RBI directions on ‘Co-operative Banks - Interest Rate on Deposits’. The sustained charge was that the bank had opened certain savings deposit accounts in the name of ineligible entities. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must bear the monetary penalty; the release does not indicate any operational restriction or licence action. RBI notes that the penalty is without prejudice to any other action it may initiate in the future.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 19 Aug 2025
- Effective From
- 19 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank