RBI imposes monetary penalty on Sindhudurg District Central Co-operative Bank Limited, Maharashtra

Case Brief

RBI, by an order dated September 25, 2024, imposed a monetary penalty on Sindhudurg District Central Co-operative Bank Limited, Maharashtra. The action followed a NABARD statutory inspection with reference to the bank’s financial position as on March 31, 2023, and a show-cause process. RBI concluded that the bank had violated Section 20 of the Banking Regulation Act, 1949 read with Section 56, specifically sustaining the charge that it sanctioned loans to its directors. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.