India, Oct. 27 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Tumkur District Co-operative Central Bank Limited, Karnataka, for violating provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The penalty, announced through an order dated October 22, 2025, was levied under the powers vested in RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Act.
The action follows a statutory inspection conducted by NABARD based on the bank's financial position as of March 31, 2024. During the inspection, it was found that the bank had sanctioned a loan to one of its directors, contravening the stipulated regulatory provisions.
After reviewing the bank's written respons...