RBI imposes monetary penalty on Thoothukudi District Central Co-operative Bank Ltd., Thoothukudi, Tamil Nadu

Summary:

The Reserve Bank of India (RBI) has imposed a penalty of u20b950,000 on the Thoothukudi District Central Co-operative Bank Ltd. for non-compliance with the directions issued by National Bank for Agriculture and Rural Development (NABARD). The penalty was imposed based on the findings of a statutory inspection conducted by NABARD as of March 31, 2023, which revealed deficiencies in the bank's reporting of fraud to NABARD. The RBI has issued a notice to the bank, advising it not to penalize customers for its failure to comply with NABARD directions. This penalty is intended to ensure regulatory compliance, and is not intended to pronounce on the validity of any transactions or agreements entered into by the bank with its customers.