Compliance Culture in Urban Co-Operative Banks: Challenges ‎and Strategies

  • Authors

    • Gopakumaran Nair. B Ph.D Research Scholar (Part-Time), Department of Banking Management, Alagappa University, Karaikudi
    • K. Alamelu Senior Professor, Department of Banking Management, Alagappa University, Karaikudi
    • AV. Karthick Teaching Assistant, Department of Computational Logistics, Alagappa University, Karaikudi
    https://doi.org/10.14419/9hc6ar42

    Received date: July 27, 2025

    Accepted date: September 25, 2025

    Published date: October 6, 2025

  • Urban Cooperative Banks; Regulatory Compliance; Risk Management; Reserve Bank of India; Agency Theory; Institutional Theory

  • Abstract

    Urban Co-operative Banks (UCBs) serve as vital financial intermediaries for urban and semi-urban populations, particularly lower and middle-income segments. However, these institutions face significant challenges in maintaining robust compliance frameworks within an in‎creasingly complex regulatory environment. This study examines compliance culture across five critical dimensions through empirical analysis of 232 UCB employees in Maharashtra. The research employs agency theory and institutional theory frameworks to understand compliance behavior patterns. Key findings reveal strong leadership commitment (88% positive responses) and employee awareness, but critical ‎gaps in accountability enforcement (41% reporting inconsistent accountability), fear-based reporting barriers (36% experiencing retaliation ‎concerns), and insufficient recognition systems (45% lacking adequate compliance rewards). The study contributes to compliance literature ‎by providing empirical evidence of the disconnect between compliance awareness and implementation effectiveness in cooperative banking ‎institutions. Strategic recommendations include implementing transparent accountability mechanisms, establishing confidential reporting ‎systems, developing structured incentive programs, and creating continuous policy update frameworks.

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  • How to Cite

    Nair. B, G., Alamelu , K. ., & Karthick , A. . (2025). Compliance Culture in Urban Co-Operative Banks: Challenges ‎and Strategies. International Journal of Accounting and Economics Studies, 12(6), 195-202. https://doi.org/10.14419/9hc6ar42