Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
23 Jul 2026
Case Brief
RBI imposed a monetary penalty of ₹50,000 on Mandya District Co-operative Central Bank Ltd., Karnataka by order dated July 17, 2026. The penalty followed a statutory inspection by NABARD and a show-cause process, after which RBI found that the bank had held shares in other co-operative societies in contravention of section 19 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.
Why RBI Acted
Following a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2025, RBI issued a show-cause notice and, after considering the bank’s reply and oral submissions, sustained one charge: the bank had held shares in other co-operative societies in contravention of section 19 read with section 56 of the Banking Regulation Act, 1949. RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must bear the monetary penalty, but the release does not impose any additional operating restriction. RBI noted that the penalty is without prejudice to any other action that may be initiated separately.
Regulatory Basis
- section 19 read with section 56 of the Banking Regulation Act, 1949
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 17 Jul 2026
- Effective From
- 17 Jul 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank