India, June 30 -- The Reserve Bank of India (RBI) has imposed a Rs 1 lakh monetary penalty on The Chikmagalur District Co-operative Central Bank Ltd., Karnataka for violating provisions of the Banking Regulation Act, 1949.
The penalty follows a statutory inspection conducted by NABARD based on the bank's financial position as of March 31, 2025, which found that the bank had sanctioned director-related loans in contravention of regulatory norms. The RBI clarified that the penalty is based on statutory compliance deficiencies and does not affect the validity of transactions between the bank and its customers.
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