UCO Bank has disclosed that the Reserve Bank of India (RBI) has imposed a monetary penalty on the bank. The penalty stems from non-compliance identified during a Statutory Inspection concerning the ‘Periodicity of payment of interest on savings deposits,’ ‘Locker Rent’ rules, and ‘Credit Information Reporting’ for Self Help Group (SHG) members. The total fine amounts to ₹38.60 lakh, and the bank confirms it has initiated corrective measures.
Regulatory Disclosure on Monetary Penalty
UCO Bank has formally informed stock exchanges regarding the receipt of a Speaking Order from the Reserve Bank of India (RBI) dated February 20, 2026. This communication details the imposition of a monetary penalty on the Bank.
Basis of Penalty Imposition
The penalty was levied following the RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2025), which reviewed the Bank’s financial position as of March 31, 2025. The core issues cited for the penalty involved non-compliance with specific RBI directions related to:
- ‘Periodicity of payment of interest on savings deposits’.
- Guidelines concerning ‘Locker Rent’.
- ‘Credit Information Reporting in respect of Self Help Group (SHG) members’.
Financial Impact and Bank Action
The total quantum of the penalty imposed by the RBI stands at ₹38.60 lakh (Rupees Thirty Eight Lakh Sixty Thousand only). The Bank has confirmed that the expected financial implications are Non-material.
In response to the findings, UCO Bank has stated that it has already taken necessary preventive actions to strengthen its internal processes to prevent the recurrence of such events in the future.
Source: BSE
