The Belagavi District Central Co-operative Bank Limited, Karnataka

Following a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2025, RBI issued a show-cause notice after supervisory findings of contravention of statutory provisions and non-compliance with RBI directions. RBI found that the bank had sanctioned director-related loans, sanctioned gold loans under the bullet repayment scheme beyond the prescribed regulatory limit, and sanctioned a loan to a non-residential commercial real estate project. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and address the compliance lapses identified by RBI. There is no stated business restriction or suspension, but the findings may expose the bank to further supervisory or enforcement action if similar breaches continue. Borrowers and counterparties are not directly restricted by this order, though the bank is expected to tighten lending controls and regulatory compliance.