Case Brief
What Happened
By an order dated August 19, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on The Vijayapura District Central Co-operative Bank Ltd., Karnataka. The penalty was imposed after supervisory inspection findings showed contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, specifically that the bank had sanctioned a loan to its director. RBI stated that the action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, and that it does not pronounce on the validity of any transaction or agreement entered into by the bank.