On September 29, 2025, the Reserve Bank of India (RBI) announced a monetary penalty of ₹1 lakh on The Sultan's Battery Co-operative Urban Bank Limited, Wayanad, Kerala, for non-compliance with RBI directions regarding loans and advances to directors, their relatives, and firms/concerns in which they are interested. 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 RBI found that the bank had sanctioned director-related loans. This action is based on deficiencies in regulatory compliance and does not affect the validity of transactions with customers. The press release number is 2025-2026/1192. Contact Puneet Pancholy, Chief General Manager. The RBI website is www.rbi.org.in, and the email is helpdoc@rbi.org.in. The Department of Communication's phone number is 022-2266 0502, and the Mumbai office pin code is 400 001. The order was dated September 25, 2025.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed the monetary penalty and conducted inspection.
The Sultan's Battery Co-operative Urban Bank Limited, Wayanad, Kerala: The entity on which the monetary penalty was imposed.
Banking Regulation Act, 1949: Act under which powers were exercised for the penalty.
Section 47A(1)(c): Section of the Act mentioned for imposing penalty.
Sections 46(4)(i) and 56: Sections of the Banking Regulation Act related to the penalty imposition.
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
September 29, 2025
RBI imposes monetary penalty on The Sultan’s Battery Co-operative Urban
Bank Limited, Wayanad, Kerala
The Reserve Bank of India (RBI) has, by an order dated September 25, 2025,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Sultan’s
Battery Co-operative Urban Bank Limited, Wayanad, Kerala (the bank) for non-
compliance with certain directions issued by RBI on ‘Loans and advances to
directors, their relatives, and firms /concerns in which they are interested’. 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 director related loans.
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.
(Puneet Pancholy)
Press Release: 2025-2026/1192 Chief General Manager