RBI · Enforcement
RBI fines Chikmagalur Co-operative Bank ₹1 lakh for director loans
The penalty was for contravening Banking Regulation Act by sanctioning loans to directors.
What changed
- RBI imposed monetary penalty of ₹1 lakh
- Bank violated Section 20 read with Section 56 of BR Act
- Contravention: director related loans
The read
The Reserve Bank of India has fined The Chikmagalur District Co-operative Central Bank ₹1 lakh for sanctioning director-related loans, violating Section 20 read with Section 56 of the Banking Regulation Act. The action follows a NABARD inspection as of March 31, 2025. After a show-cause notice and personal hearing, the RBI sustained the charge. The penalty is based on statutory deficiencies and is without prejudice to any further action against the bank.
Key numbers
- Penalty: ₹1 lakh
- Order date: June 25, 2026
- Inspection reference: March 31, 2025
- Press Release: 2026-2027/561
Primary source: rbi.org.in