Case Brief
RBI, by order dated June 15, 2026, imposed a monetary penalty of ₹1 lakh on The Shimoga District Co-operative Central Bank Ltd., Karnataka. The penalty followed a statutory inspection by NABARD with reference to the bank’s financial position as on March 31, 2025, and a subsequent show-cause process. RBI concluded that the bank had sanctioned/renewed 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 BR Act.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Shimoga, Karnataka