Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Bagalkot District Central Co-operative Bank Ltd., Bagalkot, Karnataka, by order dated March 25, 2025. RBI said the bank was found, after statutory inspection by NABARD and a show-cause process, to have sanctioned certain loans to its directors, in contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.