Case Brief
What Happened
By an order dated December 22, 2025, RBI imposed a monetary penalty of ₹2.10 lakh on Kolhapur District Central Co-operative Bank Ltd., Kolhapur, Maharashtra. The penalty followed a statutory inspection by NABARD and a show-cause notice process. RBI found that the bank had sanctioned a loan to a company in which one of its directors was a guarantor, amounting to contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.