The Shimoga District Co-operative Central Bank Ltd., Karnataka

RBI imposed a ₹1 lakh penalty on The Shimoga District Co-operative Central Bank Ltd., Karnataka. The bank was found to have sanctioned or renewed director-related loans in contravention of the BR Act.

The bank must absorb the monetary penalty; the release does not order a business restriction, suspension, or cancellation. The action serves as a compliance enforcement signal and leaves RBI free to initiate any further action if warranted.

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

RBI imposed a ₹1 lakh penalty on The Shimoga District Co-operative Central Bank Ltd., Karnataka. The action followed a finding that the bank sanctioned director-related loans in violation of the Banking Regulation Act.

The bank must absorb the monetary penalty and remain mindful of compliance with restrictions on director-related lending under the Banking Regulation Act. The order does not itself impose an operational restriction, but RBI noted that further action may still be initiated separately.

• 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