RBI imposes monetary penalty on Sindhudurg District Central Co-operative Bank Ltd., Sindhudurg, Maharashtra
Case Brief
RBI imposed a monetary penalty on Sindhudurg District Central Co-operative Bank Ltd., Sindhudurg, Maharashtra, by order dated July 17, 2026. The penalty was for contravention of section 20(1) read with section 56 of the Banking Regulation Act, 1949, after RBI found that the bank had sanctioned a director-related loan. The action followed a statutory inspection by NABARD and was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
RBI imposed a monetary penalty after a statutory inspection by NABARD (with reference to the bank's financial position as on March 31, 2025) and subsequent supervisory proceedings. RBI found the charge sustained that the bank had sanctioned a director-related loan, amounting to contravention of section 20(1) read with section 56 of the Banking Regulation Act, 1949. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Severity Assessment
The action is a monetary penalty of ₹13.30 lakh, which falls in the 2-10 lakh band, giving severity 3.
The bank must absorb the monetary penalty of ₹13.30 lakh; the order does not by itself direct operational restrictions, but it signals supervisory non-compliance and leaves RBI free to initiate any further action as permissible. There is no stated immediate impact on depositors or customers beyond the penalty and compliance implications.
Published as Sindhudurg District Central Co-operative Bank Ltd.
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