RBI imposes monetary penalty on The Kangra Central Co-operative Bank Ltd., Himachal Pradesh

Case Brief

By an order dated March 27, 2025, RBI imposed a monetary penalty of ₹25.00 lakh on The Kangra Central Co-operative Bank Ltd., Himachal Pradesh. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after RBI found, following a notice and the bank’s reply, that the bank had extended loans outside its area of operation in violation of the conditions subject to which its banking licence had been issued. RBI noted that the action was based on regulatory compliance deficiencies and did not pronounce on the validity of any customer transaction or agreement.