RBI Imposes ₹1.09 Lakh Penalty on Dr Panjabrao Deshmukh Urban Cooperative Bank
Moneylife Digital Team 07 April 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹1.09 lakh on Maharashtra-based Dr Panjabrao Deshmukh Urban Cooperative Bank Ltd for failing to comply with certain regulatory directions. These include guidelines on the classification, valuation, and operation of the investment portfolios of primary urban cooperative banks (UCBs), as well as exposure norms and other statutory restrictions. 
 
Dr Panjabrao Deshmukh Urban Cooperative Bank was also found non-compliant with directions concerning the rationalisation of customer charges under the National Electronic Funds Transfer (NEFT) system.
 
RBI's statutory inspection of the Bank revealed that the lender had breached the prudential single counterparty exposure limit for non-SLR investments on certain occasions and had levied charges exceeding the prescribed regulatory ceiling on certain NEFT transactions.
 
After considering Dr Panjabrao Deshmukh Urban Cooperative Bank's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against the lender are sustained, warranting the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Dr Panjabrao Deshmukh Urban Cooperative Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
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