On October 27, 2025, the Reserve Bank of India (RBI) announced a monetary penalty of ₹1 lakh on The Valparai Co-operative Urban Bank Ltd., Coimbatore, Tamil Nadu, for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. 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 by RBI with reference to its financial position as on March 31, 2024. The bank failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline. The press release number is 2025-2026/1394. Brij Raj, Chief General Manager. Website: www.rbi.org.in/hindi, Email: helpdoc@rbi.org.in, Phone: 022 - 2266 0502
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
The Valparai Co-operative Urban Bank Ltd., Coimbatore, Tamil Nadu: The entity on which the monetary penalty is imposed.
RBI on ‘Know Your Customer (KYC): RBI directions that the bank failed to comply with.
Banking Regulation Act, 1949: The act under which powers are conferred on RBI for imposing the penalty.
Central KYC Records Registry (CKYCR): The registry where KYC records were not uploaded.
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 Valparai Co-operative Urban Bank Ltd.,
Coimbatore, Tamil Nadu
The Reserve Bank of India (RBI) has, by an order dated October 23, 2025, imposed
a monetary penalty of ₹1 lakh (Rupees One lakh only) on The Valparai Co-operative
Urban Bank Ltd., Coimbatore, Tamil Nadu (the bank) for non-compliance with certain
directions issued by RBI on ‘Know Your Customer (KYC)’. 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 failed to upload the KYC records of customers onto Central KYC
Records Registry (CKYCR) within the prescribed timeline.
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: 2025-2026/1394 Chief General Manager