What changed

RBI's supervisory inspection with reference to March 31, 2025 financial position identified two specific violations: the bank breached prudential single counterparty exposure limits for non-SLR investments on certain occasions, and levied NEFT transaction charges exceeding the prescribed regulatory ceiling. After issuing a show cause notice and considering the bank's written and oral submissions, RBI imposed the monetary penalty.

Urban cooperative banks regulated by RBI must ensure strict adherence to prudential exposure norms and payment system charge guidelines. The penalty serves as a reminder that non-compliance with investment portfolio classification, exposure limits, and NEFT charge rationalization directions will result in regulatory enforcement action, potentially with prejudice to other actions RBI may take against the bank.

What to do next

Review and remediate single counterparty exposure limits for non-SLR investments
Align NEFT transaction charges with RBI-prescribed regulatory ceilings
Strengthen compliance systems to prevent future regulatory violations

Penalties

₹1.09 lakh (Rupees One Lakh Nine Thousand) monetary penalty imposed under Section 47A(1)(c) of Banking Regulation Act, 1949 and Section 30(1) of Payment and Settlement Systems Act, 2007

Source document (simplified)

Press Releases

| () | |
| Date : Apr 06, 2026 | |
| RBI imposes monetary penalty on Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd., Amravati, Maharashtra | |
| | The Reserve Bank of India (RBl) has, by an order dated April 2, 2026, imposed a monetary penalty of ₹1.09 lakh (Rupees One Lakh Nine Thousand only) on Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd., Amravati, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Classification, Valuation and Operation of Investment Portfolio of Primary (Urban) Co-operative Banks’, ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘National Electronic Funds Transfer (NEFT) System - Rationalisation of customer charges’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.

The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

1. breached prudential single counterparty exposure limit for non-SLR investments on certain occasions; and
2. levied charges higher than prescribed regulatory ceiling on certain NEFT transactions.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/28 | | The Reserve Bank of India (RBl) has, by an order dated April 2, 2026, imposed a monetary penalty of ₹1.09 lakh (Rupees One Lakh Nine Thousand only) on Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd., Amravati, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Classification, Valuation and Operation of Investment Portfolio of Primary (Urban) Co-operative Banks’, ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘National Electronic Funds Transfer (NEFT) System - Rationalisation of customer charges’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.

The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

breached prudential single counterparty exposure limit for non-SLR investments on certain occasions; and
levied charges higher than prescribed regulatory ceiling on certain NEFT transactions. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/28 |
| The Reserve Bank of India (RBl) has, by an order dated April 2, 2026, imposed a monetary penalty of ₹1.09 lakh (Rupees One Lakh Nine Thousand only) on Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd., Amravati, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Classification, Valuation and Operation of Investment Portfolio of Primary (Urban) Co-operative Banks’, ‘Exposure Norms and Statutory / Other Restrictions – UCBs’ and ‘National Electronic Funds Transfer (NEFT) System - Rationalisation of customer charges’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.

The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

breached prudential single counterparty exposure limit for non-SLR investments on certain occasions; and
levied charges higher than prescribed regulatory ceiling on certain NEFT transactions. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2026-2027/28 | |

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Named provisions

Section 47A(1)(c) - Banking Regulation Act, 1949 Section 46(4)(i) - Banking Regulation Act, 1949 Section 56 - Banking Regulation Act, 1949 Section 30(1) - Payment and Settlement Systems Act, 2007 Section 26(6) - Payment and Settlement Systems Act, 2007