India, Nov. 24 -- The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on The District Co-operative Central Bank Limited, Kakinada, Andhra Pradesh, for violating provisions of the Banking Regulation Act, 1949. The order was issued on November 20, 2025.
The penalty follows a NABARD inspection of the bank's financials as of March 31, 2024, which found contravention of statutory norms. After reviewing the bank's response to a show-cause notice and oral submissions, the RBI confirmed that the bank had sanctioned a loan to one of its directors, in violation of Section 20 read with Section 56 of the Act.
The central bank clarified that the action pertains solely to compliance deficiencies and does not affect the validity of tra...