The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on The Berhampur Co-operative Urban Bank Limited, Odisha, for non-compliance with RBI directions on exposure norms and statutory restrictions applicable to urban co-operative banks.

The penalty, imposed through an order dated February 11, 2026, follows RBI’s statutory inspection of the bank based on its financial position as of March 31, 2025. The central bank found that the lender had breached prudential inter-bank gross exposure limits and counter-party exposure norms.

RBI clarified that the action was taken due to regulatory compliance deficiencies and does not affect the validity of any transactions between the bank and its customers. The penalty is also without prejudice to any further action RBI may initiate against the bank.