The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Sultan’s Battery Co-operative Urban Bank Limited, Wayanad, Kerala, for violating its directives on loans and advances to directors and related parties.

The penalty, announced on September 25, 2025, follows an RBI inspection of the bank’s financials as on March 31, 2024. The regulator found the bank had sanctioned director-related loans, breaching prescribed norms.

RBI clarified that the penalty was based on regulatory deficiencies and does not affect the validity of any transactions or agreements entered into by the bank with its customers.