The Rohtak Central Co-operative Bank Limited, Rohtak

RBI imposed a monetary penalty on The Rohtak Central Co-operative Bank Limited, Rohtak for contravention of section 20(1) and section 26A(2) read with section 56 of the Banking Regulation Act, 1949. The supervisory inspection found that the bank did not transfer the eligible amount to the Depositor Education and Awareness Fund on time and sanctioned one unsecured loan as well as renewed a secured cash credit limit to two of its directors. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act, after consideration of the bank's reply and oral submissions.

The bank must absorb the monetary penalty and address the compliance failures identified by RBI. The action does not itself impose an operating restriction, but it signals supervisory concern and may be followed by further regulatory action if similar lapses recur. Depositors and stakeholders are indirectly affected through heightened compliance scrutiny of the bank.