RBI imposes monetary penalty on The Bharat Co-operative Bank Ltd., Bengaluru

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Bharat Co-operative Bank Ltd., Bengaluru by order dated December 18, 2024. RBI said the penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2023, and a subsequent show-cause process. The sustained violation was that the bank had sanctioned fresh loans and advances in breach of RBI’s Supervisory Action Framework directions: the lending was beyond the applicable single borrower exposure limit and was not backed by the prescribed collateral security. RBI cited its powers under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.