RBI imposes monetary penalty on Raigad District Central Co-op Bank Ltd, Maharashtra
Case Brief
RBI, by an order dated September 03, 2025, imposed a monetary penalty of ₹2.10 lakh on Raigad District Central Co-op Bank Ltd, Maharashtra. The action followed a statutory inspection by NABARD and subsequent supervisory proceedings. RBI found that the bank had sanctioned/renewed loans to its directors, violating Section 20 of the Banking Regulation Act, 1949, and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024, RBI issued a show-cause notice based on supervisory findings of contravention of statutory provisions. After considering the bank’s reply and oral submissions, RBI sustained the charge that the bank had sanctioned/renewed loans to its directors, in contravention of Section 20 of the Banking Regulation Act, 1949, and imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
Severity Assessment
The action is a monetary penalty of ₹2.10 lakh, which falls within the lowest monetary band and has no operational restriction beyond the fine.
The bank must absorb the monetary penalty and address the compliance lapse identified by RBI. The order does not by itself invalidate any transaction, but it signals supervisory concern over related-party lending by directors and may expose the bank to further regulatory action.
Published as Raigad District Central Co-op Bank Ltd, Maharashtra
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