Case Brief
What Happened
By an order dated February 23, 2026, RBI imposed a monetary penalty of ₹1 lakh on The Mahbubnagar District Co-operative Central Bank Ltd., Telangana. The penalty followed NABARD's statutory inspection and a subsequent show-cause process, after which RBI sustained the charge that the bank had sanctioned a director-related loan, contrary to Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI stated that the action was based on deficiencies in statutory compliance and without prejudice to any other action that may be initiated.