On October 27, 2025, the Reserve Bank of India (RBI) announced it has imposed a monetary penalty of ₹50,000 on The Shevapet Urban Co-operative Bank Limited, Tamil Nadu, via an order dated October 23, 2025. The penalty is for non-compliance with certain directions issued by RBI under 'Exposure Norms and Statutory / Other Restrictions – UCBs'. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
A statutory inspection by RBI with reference to the bank's financial position as of March 31, 2024, revealed non-compliance. The bank sanctioned loans exceeding the prescribed regulatory limit to certain nominal members.
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.
Press Release: 2025-2026/1393
Brij Raj, Chief General Manager.
RBI Website: www.rbi.org.in
RBI Email: helpdoc@rbi.org.in
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001 Phone: 022 - 2266 0502
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty for non-compliance.
Banking Regulation Act, 1949: Law under which the penalty was imposed.
The Shevapet Urban Co-operative Bank Limited, Tamil Nadu: The bank on which monetary penalty was imposed.
Section 47A(1)(c): Section of a Law under which the penalty was imposed.
Sections 46(4)(i) and 56: Sections of a Law under which the penalty was imposed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
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
October 27, 2025
RBI imposes monetary penalty on The Shevapet Urban Co-operative Bank
Limited, Tamil Nadu
The Reserve Bank of India (RBI) has, by an order dated October 23, 2025, imposed
a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Shevapet Urban
Co-operative Bank Limited, Tamil Nadu (the bank) for non-compliance with certain
directions issued by RBI under ‘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, 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 sanctioned loans more than the prescribed regulatory limit to certain
nominal members.
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: 2025-2026/1393 Chief General Manager