UCO Bank Share Price in Focus as RBI Imposes Monetary Penalty of ₹38.60 Lakh

The Reserve Bank of India has imposed a monetary penalty of ₹38.60 lakh on UCO Bank for non-compliance with its directions on multiple regulatory fronts. The action follows supervisory findings from an inspection of the bank's financial position as on March 31, 2025. 

RBI Fines UCO Bank ₹38.60 Lakh for Regulatory Lapses 

On February 20, 2026, the Reserve Bank of India announced through a press release that it has imposed a penalty of ₹38.60 lakh on UCO Bank.  

The penalty was ordered on February 16, 2026, for non-compliance with RBI directions concerning the periodicity of interest payment on savings deposits, locker rent policies, and credit information reporting for Self Help Group members.  

The action was taken under the provisions of the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005. 

Specific Violations Identified by RBI 

The Statutory Inspection for Supervisory Evaluation (ISE 2025) of UCO Bank was conducted by RBI with reference to its financial position as on March 31, 2025.  

Based on supervisory findings of non-compliance, a show cause notice was issued to the bank. After considering the bank's reply and additional submissions, RBI found three specific charges sustained against UCO Bank. 

Firstly, the bank did not pay any interest on certain Savings Bank Deposit accounts. Secondly, the bank failed to report credit-related Self-Help Group member level data to Credit Information Companies.  

Thirdly, the bank did not refund the proportionate amount of advance locker rent collected in cases where certain customers prematurely surrendered their lockers. 

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Nature of Regulatory Action 

The RBI clarified that 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.  

The imposition of the monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank. The penalty amounts to ₹38.60 lakh for the identified lapses in following prescribed banking norms. 

UCO Bank Share Price Performance  

As of February 23, 2026, at 11:15 AM, UCO Bank share price on NSE was trading at ₹29.19 up by 0.90% from the previous closing price. 

Conclusion 

The Reserve Bank of India has imposed a ₹38.60 lakh monetary penalty on UCO Bank for non-compliance with directions related to interest payment on savings deposits, credit information reporting for SHG members, and locker rent refunds. The action follows supervisory evaluation and confirmed deficiencies in the bank's adherence to regulatory provisions. 

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