Document title: RBI imposes monetary penalty on Mahila Co-operative Bank Ltd., Bangalore, Karnataka
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/461
Date: 15 June 2026
Regulatory and Policy Measures
The RBI, by an order dated 11 June 2026, imposed a monetary penalty of ₹5 lakh (Rupees Five Lakh only) on Mahila Co-operative Bank Ltd., Bangalore, Karnataka for non‑compliance with RBI directions concerning "Loans and advances to directors, their relatives, and firms/concerns in which they are interested". The penalty is imposed under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted with reference to its financial position as on 31 March 2025. Following supervisory findings of non‑compliance, the RBI issued a notice to the bank asking it to show cause why the penalty should not be imposed. After considering the bank’s written reply and oral submissions made during a personal hearing, the RBI sustained the charge that the bank had sanctioned director‑related loans, thereby violating the specified directions. Consequently, the monetary penalty of ₹5 lakh was levied. The RBI clarified that the penalty does not prejudice any other action that may be initiated against the bank and is not a determination on the validity of any transaction or agreement with its customers.
This enforcement action underscores the RBI’s continued focus on strict adherence to regulatory norms governing loans to directors and related parties.