The Tiruppur Co-operative Urban Bank Ltd

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’ and ‘Know Your Customer (KYC)’. The bank failed to adhere to the prudential inter-bank (gross) exposure limit and failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) 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, after considering the bank’s reply and oral submissions.

The bank must absorb the penalty and address the compliance gaps identified by RBI, particularly in exposure norms and KYC record reporting. The action does not itself impose a business restriction, but it signals continued supervisory scrutiny and leaves open the possibility of further RBI action if deficiencies persist.