Case Brief
RBI, by order dated June 11, 2026, imposed a monetary penalty of ₹5 lakh on Mahila Co-operative Bank Ltd., Bangalore, Karnataka. The penalty followed a statutory inspection with reference to the bank’s financial position as on March 31, 2025, and supervisory findings of non-compliance with RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI sustained the charge that the bank had sanctioned director-related loans. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Bangalore, Karnataka