Case Brief
By an order dated June 23, 2025, RBI imposed a monetary penalty of ₹1 lakh on The Hyderabad District Co-operative Central Bank Ltd., Telangana. The penalty followed a statutory inspection by NABARD as on March 31, 2024, and a show-cause process in which RBI found the sustained charge that the bank had sanctioned loans to its director, in contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI stated that the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Telangana
- Order Date