Case Brief
By order dated May 09, 2025, RBI imposed a monetary penalty of ₹2.00 lakh on The Karnataka Central Co-operative Bank Ltd, Dharwad, Karnataka. The penalty was based on contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, after supervisory findings and a show-cause notice process. RBI stated that the bank had sanctioned director-related loans, and the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act, following NABARD's statutory inspection as of March 31, 2024.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- Dharwad, Karnataka
- Order Date