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

Case Brief

RBI imposed a monetary penalty of ₹2 lakh on The Belagavi District Central Co-operative Bank Limited, Karnataka, by order dated February 23, 2026. The penalty was imposed after a statutory inspection by NABARD and a subsequent show-cause process. RBI sustained charges that the bank had sanctioned director-related loans, extended gold loans under the bullet repayment scheme beyond the prescribed regulatory limit, and sanctioned a loan to a non-residential commercial real estate project. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.