RBI · Enforcement
RBI fines Lalgudi Co-operative Urban Bank ₹1 lakh for capital adequacy lapses
RBI imposed a ₹1 lakh penalty on The Lalgudi Co-operative Urban Bank for violating prudential norms on capital adequacy.
What changed
- Monetary penalty of ₹1 lakh imposed on The Lalgudi Co-operative Urban Bank
- Penalty for non-compliance with Prudential Norms on Capital Adequacy directions
- CRAR below minimum; bank refunded share capital and violated share-linking norms
The read
RBI slapped a ₹1 lakh penalty on The Lalgudi Co-operative Urban Bank. An inspection found the bank’s CRAR below the regulatory floor, during which it refunded share capital and sanctioned loans without linking shares to borrowings. The fine, imposed under the Banking Regulation Act, signals that the regulator holds even small lenders to the same capital standards. Compliance is non-negotiable.
Key numbers
- Penalty: ₹1 lakh
- Order date: June 22, 2026
- Inspection date: March 31, 2025
- CRAR: less than regulatory minimum
Primary source: rbi.org.in