Markets

Market

News Details

(27/06/2025 12:27)

RBI fines Chittoor Co-operative Town Bank Rs 1 lakh for regulatory violations

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Chittoor Co-operative Town Bank Ltd., Andhra Pradesh, for non-compliance with specific regulatory directions related to exposure norms and Know Your Customer (KYC) requirements. The penalty was issued through an order dated June 23, 2025, under the authority granted by Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

This action follows a statutory inspection conducted by the RBI based on the bank’s financial position as of March 31, 2024. The inspection revealed deviations from RBI guidelines, prompting the issuance of a show-cause notice to the bank. After reviewing the bank’s response and oral submissions during a personal hearing, the RBI determined that the violations merited penal action.

The bank was found to have exceeded prudential inter-bank (gross) and counterparty exposure limits, and had also failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeframe.

The RBI clarified that the penalty is a result of regulatory non-compliance and does not impact the validity of any transactions or agreements entered into by the bank with its customers. The penalty is without prejudice to any further actions that may be taken by the regulator.