RBI · Enforcement
RBI fines Mandya co-op bank ₹50,000 for shareholding breach
The bank violated the Banking Regulation Act by holding shares in other co-operative societies.
What changed
- RBI imposed monetary penalty of ₹50,000 on Mandya District Co-operative Central Bank
- Bank held shares in other co-operative societies in contravention of BR Act
The read
RBI slapped a ₹50,000 penalty on Mandya District Co-operative Central Bank for violating the Banking Regulation Act. The bank held shares in other co-operative societies, a direct contravention of section 19 read with section 56. Supervisory findings from NABARD’s inspection as of March 31, 2025, triggered the action, and RBI enforced statutory compliance through this monetary penalty.
Key numbers
- Penalty amount: ₹50,000
- Date of order: July 17, 2026
- Inspection reference: March 31, 2025
- Act: Banking Regulation Act, 1949
Primary source: rbi.org.in