Recorded RBI impact
Fine: Rs 5.50 L
Monetary penalty · Fresh imposition
Published by RBI
9 Sept 2025
Case Brief
RBI, by an order dated September 03, 2025, imposed a monetary penalty on The District Co-operative Central Bank Ltd, Bidar, Karnataka after a statutory inspection by NABARD and subsequent supervisory proceedings. RBI said the bank contravened Sections 20 and 31 read with Section 56 of the Banking Regulation Act, 1949 by sanctioning director-related loans and by failing to publish its accounts and balance-sheet for FY 2023-24 and furnish copies to RBI/NABARD within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
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 findings and a show-cause process. The sustained contraventions were: sanctioning director-related loans; and failing to publish the bank’s accounts and balance-sheet for FY 2023-24 and furnish copies to RBI/NABARD within the prescribed timeline. The release states the penalty is based on statutory non-compliance and does not pronounce on the validity of any transaction or agreement with customers.
Operating Impact
The bank must absorb the Rs 5.50 lakh penalty and address the compliance failures identified by RBI/NABARD. The order does not by itself invalidate customer transactions, but RBI notes that it may initiate any other action it deems appropriate separately.
Regulatory Basis
- Sections 20 and 31 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
Action Facts
- Primary Impact
- Fine: Rs 5.50 L
- Order Date
- 3 Sept 2025
- Effective From
- 3 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank