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

Case Brief

RBI, by order dated October 22, 2025, imposed a monetary penalty of ₹1 lakh on The Tumkur District Co-operative Central Bank Limited, Karnataka. The penalty was imposed after NABARD’s statutory inspection and subsequent supervisory proceedings found that the bank had sanctioned a loan to one of its directors, contrary to Section 20 read with Section 56 of the Banking Regulation Act, 1949. RBI noted that the action was for deficiencies in statutory compliance and did not pronounce on the validity of any transaction or agreement.