RBI imposes monetary penalty on The Bellary District Co-operative Central Bank Limited, Karnataka

Case Brief

RBI imposed a monetary penalty on The Bellary District Co-operative Central Bank Limited, Karnataka, by order dated August 19, 2025. The penalty was levied after a NABARD statutory inspection and subsequent show-cause proceedings found contraventions of Sections 19 and 20 read with Section 56 of the Banking Regulation Act, 1949. RBI sustained charges that the bank sanctioned a loan to one of its directors and held shares in another co-operative society, and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.