RBI imposes monetary penalty on The Karimnagar District Co-operative Central Bank Ltd., Telangana
Case Brief
By an order dated June 23, 2025, RBI imposed a penalty on The Karimnagar District Co-operative Central Bank Ltd., Telangana after a statutory inspection by NABARD and subsequent supervisory proceedings. RBI found that the bank had sanctioned loans to its directors, constituting contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
RBI imposed a monetary penalty after supervisory findings and consideration of the bank’s reply and oral submissions. The contravention sustained was that the bank had sanctioned loans to its directors, violating Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Severity Assessment
This is a monetary penalty of ₹1 lakh, which falls within the lowest monetary band and there is no accompanying operational restriction.
The bank must absorb the monetary penalty of ₹1 lakh; the order does not itself impose any new operational restriction or withdrawal of business activity. The finding concerns compliance with director-loan restrictions under the Banking Regulation Act and may leave the bank exposed to further RBI action if warranted.
Published as The Karimnagar District Co-operative Central Bank Ltd., Telangana
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
© 2026 RegOversight by OddVector