The Kodagu District Co-operative Central Bank Limited, Karnataka

RBI imposed a ₹1 lakh penalty on The Kodagu District Co-operative Central Bank Limited, Karnataka for sanctioning director-related loans in violation of the Banking Regulation Act.

The bank must absorb the financial penalty and remain mindful of compliance expectations under the Banking Regulation Act. The order does not itself pronounce on the validity of the underlying transactions, but it leaves open the possibility of further RBI action based on the same supervisory findings.

• Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act)
• Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act

RBI imposed a penalty of Rs 5 lakh on Kodagu District Co-operative Central Bank Ltd., Madikeri. The bank was found to have violated RBI guidelines on Non-SLR investments.

The bank must bear the monetary penalty and the finding of non-compliance. The action does not, on the face of the release, impose an operational restriction, but it signals regulatory scrutiny over the bank's investment practices going forward.

• Section 46 read with Section 47A of the Banking Regulation Act, 1949 (AACS)