Case Brief
What Happened
By an order dated September 15, 2025, RBI imposed a monetary penalty of Rs 1 lakh on Yavatmal District Central Co-operative Bank Ltd., Maharashtra. The action followed a NABARD statutory inspection and subsequent supervisory proceedings in which RBI found that the bank had sanctioned loans related to its directors, violating Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI said the penalty was imposed under Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act.