**Executive Summary**
RBI imposed a monetary penalty of ₹2 lakh on The Berhampur Co-operative Urban Bank Limited, Odisha, due to non-compliance with RBI directions on ‘Exposure Norms and Statutory/ Other Restrictions - UCBs'. The penalty was imposed on February 11, 2026, following a statutory inspection as of March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹2 lakh on The Berhampur Co-operative Urban Bank Limited, Odisha.
* The penalty was imposed via an order dated February 11, 2026.
* The penalty is for non-compliance with RBI directions on ‘Exposure Norms and Statutory/ Other Restrictions - UCBs'.
* The imposition is under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Basis for Penalty:**
* The penalty is based on findings from the statutory inspection conducted by RBI with reference to the bank's financial position as of March 31, 2025.
* The bank breached the prudential inter-bank (gross) exposure limit and inter-bank counter-party limit.
* A notice was issued to the bank, and their reply was considered before imposing the penalty.
* **Clarifications:**
* The action is based on deficiencies in regulatory compliance.
* The action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The imposition of this penalty does not prejudice any other action that RBI may initiate against the bank.
**Impact Analysis**
**The Berhampur Co-operative Urban Bank Limited, Odisha**
* **Impact:** The bank faces a monetary penalty of ₹2 lakh due to non-compliance with RBI directions. This may negatively affect its financial standing and reputation.
* **Action Required:** The bank must pay the penalty and address the deficiencies in regulatory compliance to avoid further penalties.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed monetary penalty and issued directions
The Berhampur Co-operative Urban Bank Limited, Odisha: Entity on which monetary penalty was imposed
Banking Regulation Act, 1949: Act under which the penalty was imposed; Section 47A(1)(c) read with Sections 46(4)(i) and 56 mentioned
Exposure Norms and Statutory/ Other Restrictions - UCBs: Directions issued by RBI that the bank did not comply with
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ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 12, 2026
RBI imposes monetary penalty on The Berhampur Co-operative Urban Bank
Limited, Odisha
The Reserve Bank of India (RBI) has, by an order dated February 11, 2026,
imposed a monetary penalty of ₹2 lakh (Rupees Two Lakh only) on The Berhampur
Co-operative Urban Bank Limited, Odisha (the 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, 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 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: 2025-2026/2100 Chief General Manager