**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on Agartala Co-operative Urban Bank Limited, Tripura, for non-compliance with RBI directions on 'Exposure Norms and Statutory/ Other Restrictions - UCBs'. The order was issued on February 3, 2026. This penalty is imposed under provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹2 lakh on Agartala Co-operative Urban Bank Limited.
* The penalty is due to non-compliance with RBI directions on 'Exposure Norms and Statutory/ Other Restrictions - UCBs'.
* **Statutory Basis:**
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Background:**
* The decision was based on the statutory inspection of the bank's financial position as of March 31, 2025.
* RBI found non-compliance with its directions.
* A notice was issued to the bank to show cause regarding the penalty.
* **Breach Identified:**
* The bank breached the prudential inter-bank (gross) exposure limit and the prudential inter-bank counter party limit.
* **Nature of Action:**
* The action is based on deficiencies in regulatory compliance.
* It does not affect the validity of transactions between the bank and its customers.
* The penalty is without prejudice to any other action that RBI may initiate against the bank.
**Impact Analysis**
**Agartala Co-operative Urban Bank Limited, Tripura**
* **Impact:** Financial penalty of ₹2 lakh and scrutiny of regulatory compliance.
* **Action Required:** Review and rectify the causes of non-compliance to avoid future penalties and ensure adherence to RBI guidelines.
**Customers of Agartala Co-operative Urban Bank Limited, Tripura**
* **Impact:** No direct impact on the validity of their transactions with the bank.
* **Action Required:** None. However, customers may want to be aware of the bank's regulatory standing.
**Reserve Bank of India (RBI)**
* **Impact:** Maintaining regulatory oversight and ensuring compliance within the banking sector.
* **Action Required:** Continue monitoring the bank's compliance and take further action if necessary.
Key Entities Referenced
Agartala Co-operative Urban Bank Limited: The bank on which the monetary penalty is imposed.
Tripura: Location of the Agartala Co-operative Urban Bank Limited.
Exposure Norms and Statutory/ Other Restrictions - UCBs: Directions issued by RBI that the bank failed to comply with.
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Banking Regulation Act, 1949: The Act under which the penalty is imposed; specifically Sections 47A(1)(c), 46(4)(i), and 56.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 05, 2026
RBI imposes monetary penalty on Agartala Co-operative
Urban Bank Limited, Tripura
The Reserve Bank of India (RBI) has, by an Order dated February 03, 2026,
imposed a monetary penalty of ₹2 lakh (Rupees Two Lakh only) on Agartala Co-
operative Urban Bank Limited, Agartala, Tripura (bank) for non-compliance with
certain directions issued by RBI on ‘Exposure Norms and Statutory/ Other
Restrictions - UCBs’. This penalty has been imposed in exercise of powers conferred
on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56
of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its
financial position as on March 31, 2025. Based on supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the bank advising it to show cause as to why penalty should not be
imposed on it for its failure to comply with the said directions. After considering the
bank’s reply to the notice and oral submissions made during the personal hearing,
RBI found, inter alia, that the following charge against the bank was sustained,
warranting imposition of monetary penalty:
The bank had breached the prudential inter-bank (gross) exposure limit and the
prudential inter-bank counter party limit.
This action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered into by the
bank with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/2049 Chief General Manager