Case Brief
RBI, by order dated June 25, 2026, imposed a monetary penalty of ₹1 lakh on The Chikmagalur 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 subsequent supervisory proceedings. RBI found that the bank had sanctioned director-related loans, constituting contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed 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
- Chikmagalur, Karnataka