The Reserve Bank of India (RBI) has imposed a Rs 5 lakh monetary penalty on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab for violating regulatory norms related to exposure limits and cybersecurity requirements.

The penalty follows an RBI inspection based on the bank's financial position as of March 31, 2025, which found that the bank had sanctioned loans beyond the prescribed regulatory limits to certain nominal members and failed to implement two-factor authentication for access to its Core Banking Solution (CBS). The RBI clarified that the penalty is based on regulatory compliance deficiencies and does not affect the validity of transactions between the bank and its customers.