RBI imposes monetary penalty on The Tumkur Veerashaiva Co-operative Bank Ltd., Karnataka

Case Brief

RBI, by order dated March 25, 2025, imposed a monetary penalty of ₹50,000 on The Tumkur Veerashaiva Co-operative Bank Ltd., Karnataka. The penalty was levied after RBI’s statutory inspection found non-compliance with specific directions issued under the Supervisory Action Framework (SAF). RBI said the bank had sanctioned fresh loans and advances carrying risk-weights of more than 100%, had not curtailed exposure to a sector with high NPAs, and had not reduced operating/administrative expenses. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.