Monetary Penalty on The Citizens Urban Cooperative Bank Ltd., Jalandhar · 2026-2027/560
RBI press-release 2026-2027/560 · 29 Jun 2026
Official title
RBI imposes monetary penalty on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab
RBI press-release 2026-2027/560 · 29 Jun 2026
Official title
RBI imposes monetary penalty on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹5 lakh on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab. The bank fails to comply with regulatory directions on Exposure Norms and Statutory Restrictions. The bank also fails to implement two factor authentication for its Core Banking Solution. The bank sanctions loans beyond the prescribed regulatory limit to certain nominal members. This action follows a statutory inspection of the bank financial position as of March 31, 2025. The penalty does not affect the validity of any transactions or agreements between the bank and its customers.
Key dates
Who is affected
Thresholds
If you do not comply
June 29, 2026
RBI imposes monetary penalty on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab
The Reserve Bank of India (RBI) has, by an order dated June 25, 2026, imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on The Citizens Urban Cooperative Bank Ltd., Jalandhar, Punjab (the bank) for non-compliance with certain directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions’ and ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) – A Graded Approach’. 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 additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty: The bank had: i. sanctioned loans beyond the prescribed regulatory limit to certain nominal members; and ii. failed to put in place two factor authentication for accessing the Core Banking Solution.
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: 2026-2027/560 Chief General Manager प्रेस प्रकाशनी PRESS RELEASE
भारतीय ǐरज़वर् बैंक
RESERVE BANK OF INDIA
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