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

Case Brief

By an order dated March 20, 2026, RBI imposed a monetary penalty of ₹1 lakh on The Kodagu District Co-operative Central Bank Limited, Karnataka. The action followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2025, and a show-cause process. RBI sustained the charge that the bank had sanctioned director-related loans, constituting contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949, and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.