RBI · Enforcement
RBI imposes ₹5 lakh penalty on Citizens Urban Cooperative Bank for compliance failures
Regulator penalises Jalandhar-based co-op bank for breaching exposure norms and cyber security framework.
What changed
- Sanctioned loans beyond regulatory limit to nominal members.
- Failed to implement two-factor authentication for core banking system.
The read
RBI fined the bank ₹5 lakh. The lender breached exposure norms by sanctioning loans beyond regulatory caps to nominal members, and it failed to implement two-factor authentication for its core banking system — a cyber security lapse. An inspection as of March 31, 2025, revealed these compliance failures. The penalty is modest but signals no slack for cooperative banks.
Key numbers
- Penalty: ₹5 lakh
Primary source: rbi.org.in