Case Brief
What Happened
By an order dated June 4, 2025, RBI imposed a monetary penalty of ₹1 lakh on The Adilabad District Co-operative Central Bank Ltd., Telangana. The penalty was levied after NABARD’s statutory inspection and subsequent supervisory process found that the bank had contravened Section 20 read with Section 56 of the Banking Regulation Act, 1949 by sanctioning loans to its directors. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and sustained the charge under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.