On September 25, 2025, The Reserve Bank of India (RBI) released a statement announcing that it has imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Tamil Nadu Circle Postal Co-operative Bank Ltd., Tamil Nadu for non-compliance with specific directions issued by RBI under 'Supervisory Action Framework (SAF)'. The penalty was issued 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 of the bank conducted by RBI with reference to its financial position as on March 31, 2024 revealed that the bank had offered interest rates on deposits higher than those offered by State Bank of India in non-adherence to directions issued under SAF.
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 and is without prejudice to any other action that may be initiated by RBI against the bank.
Contact information for the Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001: Phone: 022 - 2266 0502; Website: www.rbi.org.in; email: helpdoc@rbi.org.in.
The press release number is 2025-2026/1168 and was issued by Puneet Pancholy, Chief General Manager.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty.
The Tamil Nadu Circle Postal Co-operative Bank Ltd., Tamil Nadu: Entity on which monetary penalty is imposed.
Supervisory Action Framework (SAF): Framework under which directions were issued by RBI.
Section 47A(1)(c): Section of the Banking Regulation Act, 1949, conferring powers on RBI for imposing penalties.
Banking Regulation Act, 1949: Act under which the penalty was imposed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 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 25, 2025
RBI imposes monetary penalty on The Tamil Nadu Circle Postal Co-operative
Bank Ltd., Tamil Nadu
The Reserve Bank of India (RBI) has, by an order dated September 23, 2025,
imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Tamil
Nadu Circle Postal Co-operative Bank Ltd., Tamil Nadu (the bank) for non-
compliance with specific directions issued by RBI under ‘Supervisory Action
Framework (SAF)’. 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 offered interest rates on deposits higher than those offered by State
Bank of India in non-adherence to directions issued under SAF.
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: 2025-2026/1168 Chief General Manager