India, March 24 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Kodagu District Co-operative Central Bank Limited, Karnataka, for violation of provisions under the Banking Regulation Act, 1949.
The penalty, issued through an order dated March 20, 2026, relates to contravention of Section 20 read with Section 56 of the Act. The action follows supervisory findings based on a statutory inspection carried out by NABARD with reference to the bank's financial position as on March 31, 2025.
According to the RBI, the bank had sanctioned loans to its directors, which constitutes a breach of regulatory provisions. After issuing a show-cause notice and reviewing the bank's response along with oral submissions, t...