Document Title: RBI imposes monetary penalty on Sindhudurg District Central Co-operative Bank Ltd., Sindhudurg, Maharashtra
Issuing Authority: Reserve Bank of India (RBI)
Reference: Press Release: 2026-2027/741
Date: 23 July 2026
Banking and Credit
The RBI, by an order dated 17 July 2026, imposed a monetary penalty of ₹13.30 lakh on Sindhudurg District Central Co‑operative Bank Ltd. for contravening Section 20(1) read with Section 56 of the Banking Regulation Act, 1949. The penalty follows a statutory inspection carried out by NABARD concerning the bank’s financial position as of 31 March 2025. The RBI’s investigation concluded that the bank had sanctioned a loan to a director, a breach of statutory compliance.
Regulatory and Policy Measures
The penalty was imposed under the RBI’s powers under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act. The RBI noted that the imposition of the monetary penalty does not prejudice any further action that may be taken against the bank. The notice and show‑cause process were conducted, and the bank’s reply was considered before the penalty was confirmed.
The RBI’s action underscores its supervisory role in ensuring compliance with banking regulations and its willingness to penalise violations, particularly those involving director‑related transactions.