RBI · Enforcement
RBI fines Sri Bharathi Co-operative Urban Bank ₹1.5 lakh for rule breaches
RBI imposed a ₹1.50 lakh penalty on Sri Bharathi Co-operative Urban Bank for violating norms on director-related loans and small-value loan targets.
What changed
- Sanctioned director related loans
- Failed to ensure small value loans were at least 40% of aggregate advances
The read
The Reserve Bank of India fined Sri Bharathi Co-operative Urban Bank ₹1.50 lakh for failing to comply with lending restrictions. The bank sanctioned loans to directors and their interests, violating prudential norms, and fell short of the mandated 40% share of small-value loans in its portfolio as of March 31, 2025. The penalty, though modest, reflects the regulator's insistence on compliance with lending rules for cooperative banks.
Key numbers
- Penalty: ₹1.50 lakh
- Minimum small loan share: 40%
Primary source: rbi.org.in