Case Brief
By an order dated July 17, 2026, RBI imposed a monetary penalty of Rs 13.30 lakh on Kolhapur District Central Co-op Bank Ltd., Maharashtra. The penalty followed a statutory inspection by NABARD and subsequent supervisory proceedings, in which RBI found that the bank had sanctioned director-related loans, amounting to non-compliance with section 20(1) read with section 56 of the Banking Regulation Act, 1949. RBI issued a show-cause notice, considered the bank’s reply and oral submissions, and then sustained the charge, imposing 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 13.3 L
- Entity Type
- Co-operative bank
- Location
- Kolhapur, Maharashtra