Document title: RBI imposes monetary penalty on Sangli District Central Co‑operative Bank Ltd.
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/764
Date: July 27, 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated July 23, 2026, imposed a monetary penalty of ₹7 lakh (Rupees Seven Lakh only) on Sangli District Central Cooperative Bank Ltd., Maharashtra, for contravention of the provisions of section 20(1) read with section 56 of the Banking Regulation Act, 1949. The penalty was exercised under the powers conferred on RBI by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Act.
A statutory inspection of the bank was carried out by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2025. Based on supervisory findings of statutory non‑compliance and related correspondence, RBI issued a notice to the bank asking it to show cause why a penalty should not be imposed for its failure to comply with the said provisions. After considering the bank’s written reply, additional submissions, and oral submissions made during a personal hearing, RBI sustained the charge that the bank had sanctioned director‑related loans, warranting the imposition of the monetary penalty.
The RBI clarified that this action is based solely on deficiencies in statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by RBI against the bank.
Chief General Manager (Brij Raj) signed the press release.