RBI imposes Rs 30,000 Penalty on The Pallikonda Co-operative Urban Bank Limited

India, March 13 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 30,000 on The Pallikonda Co-operative Urban Bank Limited, Tamil Nadu, for non-compliance with regulatory directions related to capital adequacy and exposure norms applicable to Urban Co-operative Banks (UCBs).

The penalty, imposed through an order dated March 9, 2026, was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The action follows a statutory inspection conducted by RBI with reference to the bank's financial position as of March 31, 2025. Based on supervisory findings and subsequent correspondence, RBI issued a show-cause notice to the bank seeking an explanation for the regulatory lapses. ...