RBI · Enforcement
RBI fines Kolhapur District Central Co-op Bank ₹13.30 lakh for director-related loans
The penalty was for sanctioning loans to directors, violating Banking Regulation Act provisions.
What changed
- RBI imposed monetary penalty of ₹13.30 lakh
- Penalty for non-compliance with BR Act sections 20(1) and 56
- Bank sanctioned director related loans
The read
RBI fined the bank ₹13.30 lakh for director-related loans. A NABARD inspection as of March 31, 2025, uncovered the violation. The bank's reply failed to convince RBI, which found the charge sustained. This penalty demonstrates RBI's strict enforcement of rules against connected lending in cooperative banks, and it does not invalidate any customer transactions.
Key numbers
- Monetary penalty: ₹13.30 lakh
- Date of order: July 17, 2026
- Inspection reference: March 31, 2025
Primary source: rbi.org.in