India, Nov. 24 -- The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on Tumkur Grain Merchants Co-operative Bank Limited, Karnataka, for failing to comply with directions issued under the Supervisory Action Framework (SAF). The penalty was levied through an order dated November 20, 2025, under the Banking Regulation Act, 1949.
The action follows an RBI inspection of the bank's financial position as of March 31, 2024. After identifying instances of non-compliance, the central bank issued a show-cause notice. Following a review of the bank's written and oral submissions, the RBI concluded that key violations were established.
According to the RBI, the bank sanctioned fresh loans and advances with risk weights exceeding 10...