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Shri Basaveshwar Sahakari Bank Niyamitha, Bagalkot, Karnataka

Co-operative bankBagalkot, Karnataka

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

Recorded RBI impact

Fine: Rs 1.00 L

Monetary penalty · Fresh imposition

S1

Published by RBI

20 Nov 2025

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Shri Basaveshwar Sahakari Bank Niyamitha, Bagalkot, Karnataka, following a statutory inspection with reference to its financial position as on March 31, 2024. RBI said the bank had failed to comply with directions on Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs and the Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016. After supervisory findings, a notice, the bank's reply, and oral submissions, RBI sustained the charges that the bank had not classified certain loan accounts as non-performing assets and had opened certain savings deposit accounts in the name of ineligible entities. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

Why RBI Acted

Lending normsCustomer protectionReporting & disclosure

RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory inspection and show-cause proceedings. The sustained charges were that the bank did not classify certain loan accounts as non-performing assets in accordance with income recognition, asset classification and provisioning norms, and it opened certain savings deposit accounts in the name of ineligible entities, breaching RBI directions on IRACP for UCBs and interest rate on deposits for co-operative banks.

Operating Impact

The bank must absorb the penalty and remain compliant with RBI's asset classification and deposit-related directions. The order does not itself restrict operations or alter customer transactions, but RBI may initiate further action if non-compliance continues.

Regulatory Basis

  • Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 1.00 L
Order Date
12 Nov 2025
Effective From
12 Nov 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank