Case Brief
By an order dated March 26, 2025, RBI imposed a monetary penalty of ₹5.00 lakh on The South Canara District Central Co-operative Bank Ltd., Karnataka. The penalty was imposed after a statutory inspection by NABARD and a show-cause process, with RBI finding that the bank had contravened Section 20 read with Section 56 of the Banking Regulation Act, 1949 by sanctioning director-related loans. RBI stated that the penalty is based on deficiencies in statutory compliance and does not pronounce on the validity of any transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Karnataka
- Order Date