Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on The Bharat Co-operative Bank Limited, Bengaluru, Karnataka, by order dated August 19, 2025. RBI said a statutory inspection as of March 31, 2024 found the bank had not complied with specific directions issued under the Supervisory Action Framework (SAF). The sustained violations included sanctioning or renewing credit to sectors with high NPA/default levels, disbursing fresh loans and advances without collateral security of term deposits, and offering deposit interest rates above those offered by State Bank of India. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.