Case Brief
By an order dated August 19, 2025, RBI imposed a monetary penalty of Rs 1 lakh on The Dharmapuri District Central Co-operative Bank Ltd., Tamil Nadu. The action followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2024, and supervisory findings that the bank had contravened Section 20 read with Section 56 of the Banking Regulation Act, 1949 by sanctioning loans to its directors. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge 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
- Dharmapuri, Tamil Nadu