Case Brief
What Happened
By order dated May 09, 2025, RBI imposed a monetary penalty of ₹2.00 lakh on The Karnataka Central Co-operative Bank Ltd, Dharwad, Karnataka. The penalty was based on contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, after supervisory findings and a show-cause notice process. RBI stated that the bank had sanctioned director-related loans, and the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, following NABARD's statutory inspection as of March 31, 2024.