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Raigad District Central Co-operative Bank Ltd., Maharashtra

Co-operative bankMaharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 10.1 L

Monetary penalty · Fresh imposition

S3

Published by RBI

27 Jul 2026

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10.10 lakh on Raigad District Central Co-operative Bank Ltd., Maharashtra, by order dated July 23, 2026. The penalty was based on contraventions of section 20(1) read with section 56 of the Banking Regulation Act, 1949 and RBI directions on membership of Credit Information Companies by co-operative banks. RBI’s supervisory inspection, conducted by NABARD with reference to the bank’s financial position as on March 31, 2025, found that the bank had sanctioned a director-related loan and failed to report credit information of its borrowers to all Credit Information Companies. After notice, reply and additional submissions, RBI sustained these charges and imposed the penalty under the cited statutory provisions.

Why RBI Acted

Governance oversightReporting & disclosure

RBI imposed a monetary penalty after supervisory inspection found sustained contraventions of section 20(1) read with section 56 of the Banking Regulation Act, 1949 and RBI directions on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. The charges upheld were that the bank sanctioned a director-related loan and failed to report credit information of its borrowers to all CICs. RBI noted the penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act and under section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.

Operating Impact

The bank must absorb the monetary penalty and may also face further regulatory action, as RBI explicitly stated the penalty is without prejudice to any other action that may be initiated. There is no stated operational restriction in this release, but the findings highlight compliance obligations around related-party lending and reporting borrower credit information to all CICs.

Regulatory Basis

  • section 20(1) read with section 56 of the Banking Regulation Act, 1949
  • section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
  • section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005

Action Facts

Primary Impact
Fine: Rs 10.1 L
Order Date
23 Jul 2026
Effective From
23 Jul 2026
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank