Bhubaneswar: Reserve Bank of India (RBI) has imposed a penalty of Rs two lakh on Berhampur Cooperative Urban Bank Ltd in Odisha for non-compliance with the directions issued by it.
The penalty was imposed for violating exposure norms and inter-bank counter-party limits detected during inspection as of March 31, 2025. The penalty relates only to regulatory non-compliance and does not affect customer transactions, sources said.
As per an order issued by RBI, Berhampur Cooperative Urban Bank has been penalised for non-compliance with certain directions issued by the RBI regarding exposure norms and the statutory or other restrictions applicable to urban cooperative banks (UCBs). RBI found out that the lender had breached the prudential inter-bank (gross) exposure limit and interbank counterparty limit.
“After considering the reply and oral submissions of both the banks during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty,” the central bank said.
RBI said the penalty is based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement the cooperative bank entered into with its customer.
