RBI · Enforcement
RBI fines Sindhudurg District Central Co-operative Bank ₹13.30 lakh for director-related loan
The penalty stems from a NABARD inspection that found the bank sanctioned a director-related loan, violating Banking Regulation Act provisions.
What changed
- RBI imposed monetary penalty of ₹13.30 lakh on the bank
- Penalty for contravention of section 20(1) read with section 56 of BR Act
- Charge sustained: bank sanctioned director related loan
The read
RBI hit Sindhudurg District Central Co-operative Bank with a ₹13.30 lakh penalty. The National Bank for Agriculture and Rural Development found the bank violated section 20(1) read with section 56 of the Banking Regulation Act by sanctioning a director-related loan. Co-operative banks must avoid connected lending, and this fine enforces that rule. The action does not judge any customer transaction but signals strict compliance.
Key numbers
- Penalty amount: ₹13.30 lakh
Primary source: rbi.org.in