RBI imposes monetary penalty on The Co-operative Urban Bank Limited – Parlakhemundi, Odisha

**Executive Summary** This press release, dated December 11, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹13,000 on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha, due to non-compliance with specific RBI directions. The penalty was issued following a statutory inspection of the bank's financial position as of March 31, 2025. The order was issued on December 9, 2025. **Key Points / Main Content** * **Penalty Imposed:** * RBI imposed a monetary penalty of ₹13,000 on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha. * **Reasons for Penalty:** * Non-compliance with specific directions issued by RBI under the ‘Supervisory Action Framework (SAF)’. * Non-compliance with directions issued by RBI on ‘Membership of Credit Information Companies by Co-operative Banks’. * **Legal Basis:** * Penalty imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005. * **Inspection Findings:** * The statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2025. * The bank incurred capital expenditure without prior RBI approval in non-adherence to SAF directions. * The bank failed to submit credit information of its customers to all four Credit Information Companies. * **Disclaimer:** * 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 monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank. **Impact Analysis** **The Co-operative Urban Bank Limited, Parlakhemundi, Odisha** * **Impact:** Financial penalty of ₹13,000; potential reputational damage; increased scrutiny from RBI. * **Action Required:** Ensure compliance with RBI directions under SAF and those related to membership of Credit Information Companies. **Reserve Bank of India (RBI)** * **Impact:** Enforcing regulatory compliance; maintaining stability and integrity of the banking system. * **Action Required:** Monitor the bank's compliance and take further action if necessary. **Customers of The Co-operative Urban Bank Limited** * **Impact:** No immediate impact on the validity of transactions or agreements. The action aims to ensure the bank's stability and compliance with regulations, which indirectly benefits customers. * **Action Required:** No direct action required.

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