RBI Imposes ₹13,000 Penalty on Cooperative Urban Bank from Odisha
Moneylife Digital Team 12 December 2025
Reserve Bank of India (RBI) has imposed a penalty of ₹13,000 on Odisha-based Cooperative Urban Bank Ltd, for non-compliance with the directions issued by the banking regulator.
 
Cooperative Urban Bank has been penalised for non-compliance with specific directions issued by RBI under the supervisory action framework (SAF) and certain directions issued by RBI on membership of credit information companies (CICs) by cooperative banks.
 
RBI’s statutory inspection found that the Cooperative Urban Bank had incurred capital expenditure without obtaining prior approval from the RBI, in violation of the directions issued under SAF and had also failed to submit its customers’ credit information to all four Credit Information Companies.
 
After considering the reply and oral submissions of the Bank during the personal hearing, the RBI states that it has concluded that the non-compliance with its directions was substantiated and warranted the imposition of a monetary penalty.
 
RBI says the penalty imposed on Cooperative Urban Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered by the banks with their customers.
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