Tumkur Grain Merchants Co-operative Bank Ltd., Tumkur, Karnataka

RBI imposed a ₹1 lakh penalty on Tumkur Grain Merchants Co-operative Bank Limited, Karnataka for non-compliance with SAF directions. The bank had sanctioned risky loans, offered higher FD rates than SBI, and extended credit to high-NPA/default sectors.

The bank must absorb the monetary penalty and is expected to strengthen compliance with RBI's SAF directions going forward. The release also notes that the penalty is without prejudice to any other action RBI may initiate, so further supervisory or enforcement steps remain possible.

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

RBI imposed a ₹5 lakh monetary penalty on Tumkur Grain Merchants Co-operative Bank Ltd., Tumkur, Karnataka.

The bank must absorb the penalty and address the compliance deficiencies identified by RBI, particularly around KYC, AML, CFT and PMLA-related obligations. The action has no stated operational restriction, but it signals heightened regulatory scrutiny of the bank’s compliance controls.

• Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)