Case Brief
RBI, by order dated August 20, 2026, imposed a monetary penalty of ₹2.50 lakh on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka. The penalty followed a statutory inspection and subsequent show-cause notice, and was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. RBI sustained charges that the bank failed to classify certain loan accounts as NPAs and sanctioned loans to directors-related parties, contrary to RBI directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs and on loans and advances to directors, their relatives, and firms/concerns in which they are interested.
Action Snapshot
- Primary Impact
- Fine: Rs 2.50 L
- Entity Type
- Co-operative bank
- Location
- Hungund, Karnataka