RBI imposes monetary penalty on The Citizen Co-operative Bank Limited, Bangalore, Karnataka
RBI press-release 2026-2027/762 · 27 Jul 2026
RBI press-release 2026-2027/762 · 27 Jul 2026
Summary
Check the official recordThe Reserve Bank of India (RBI) has imposed a monetary penalty of ₹50,000 on The Citizen Co-operative Bank Limited, Bangalore, Karnataka, for failing to comply with RBI directions regarding 'Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs'. The penalty follows a statutory inspection of the bank's financial position as of March 31, 2025, which revealed that the bank failed to classify certain loan accounts as non-performing assets (NPAs). The RBI issued a show-cause notice, and after reviewing the bank's reply and oral submissions, determined the charge was sustained. This action is based on regulatory compliance deficiencies and does not affect the validity of the bank's transactions with its customers.
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July 27, 2026
RBI imposes monetary penalty on The Citizen Co-operative Bank Limited, Bangalore, Karnataka
The Reserve Bank of India (RBI) has, by an order dated July 17, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Citizen Co-operative Bank Limited, Bangalore, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs’. 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.
The statutory inspection of the bank was conducted by 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 and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had failed to classify certain loan accounts as non-performing assets (NPAs).
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)
Press Release: 2026-2027/762 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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