RBI · Enforcement
RBI fines Chittoor District Co-operative Central Bank ₹1 lakh for director-related loans
The central bank penalised the bank for violating Section 20 read with Section 56 of the Banking Regulation Act.
What changed
- RBI imposed a monetary penalty of ₹1 lakh on The Chittoor District Co-operative Central Bank Ltd.
- Penalty for contravention of provisions of Section 20 read with Section 56 of the BR Act.
- Bank had sanctioned director related loans.
The read
RBI has slapped a ₹1 lakh penalty on The Chittoor District Co-operative Central Bank for granting 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, which found statutory non-compliance. The penalty, imposed under Section 47A(1)(c), is a reminder that co-operative banks must adhere strictly to lending restrictions. This is not about transaction validity but about enforcing prudential norms.
Key numbers
- Penalty: ₹1 lakh
Primary source: rbi.org.in