Case Brief
What Happened
By an order dated July 17, 2026, RBI imposed a monetary penalty of Rs 13.30 lakh on Kolhapur District Central Co-op Bank Ltd., Maharashtra. The penalty followed a statutory inspection by NABARD and subsequent supervisory proceedings, in which RBI found that the bank had sanctioned director-related loans, amounting to non-compliance with section 20(1) read with section 56 of the Banking Regulation Act, 1949. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge, imposing the penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.