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

Case Brief

By an order dated September 29, 2025, RBI imposed a monetary penalty on The Bagalkot District Central Co-operative Bank Limited, Bagalkot, Karnataka. The action followed supervisory findings from a NABARD inspection relating to the bank’s financial position as on March 31, 2024. RBI sustained charges that the bank sanctioned a director-related loan and failed to submit certain statutory returns to NABARD within the prescribed timeline, amounting to contravention of Sections 20 read with Section 56 of the Banking Regulation Act, 1949 and non-compliance with NABARD directions on OSS/FMS return submission. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.