On December 01, 2025, the Reserve Bank of India (RBI) announced a monetary penalty of ₹50,000 on The Kallidaikurichi Co-operative Urban Bank Limited, Tamil Nadu, due to non-compliance with RBI directions on Prudential Norms on Capital Adequacy - Primary (Urban) Co-operative Banks (UCBs). The penalty was imposed under 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 with reference to its financial position as on March 31, 2024. The bank had allowed the refund of share capital to its members, despite its CRAR being less than the regulatory minimum.
This action is based on deficiencies in regulatory compliance. The imposition of the monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Contact person: Brij Raj, Chief General Manager. Press Release: 2025-2026/1601. Website: www.rbi.org.in. Email: helpdoc@rbi.org.in. Phone: 022 - 2266 0502. Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001.
Key Entities Referenced
Reserve Bank of India (RBI): Imposes monetary penalty and conducts inspections.
The Kallidaikurichi Co-operative Urban Bank Limited, Tamil Nadu: Bank on which monetary penalty is imposed.
Banking Regulation Act, 1949: Act under which RBI imposes the penalty.
Prudential Norms on Capital Adequacy - Primary (Urban) Co-operative Banks (UCBs): Directions issued by RBI which the bank failed to comply with.
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
December 01, 2025
RBI imposes monetary penalty on The Kallidaikurichi Co-operative Urban Bank
Limited, Tamil Nadu
The Reserve Bank of India (RBI) has, by an order dated November 27, 2025,
imposed a monetary penalty of ₹50,000/- (Rupees Fifty thousand only) on The
Kallidaikurichi Co-operative Urban Bank Limited, Tamil Nadu (the bank) for non-
compliance with certain directions issued by RBI on ‘Prudential Norms on Capital
Adequacy - Primary (Urban) Co-operative Banks (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, 2024. 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 allowed the refund of share capital to its members, despite its CRAR
being less than the regulatory minimum.
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: 2025-2026/1601 Chief General Manager