India, June 23 -- The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on The Chittoor District Co-operative Central Bank Ltd. for violating provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The penalty follows a statutory inspection conducted by National Bank for Agriculture and Rural Development based on the bank's financial position as of March 31, 2025. RBI initiated supervisory action after identifying instances of non-compliance and subsequently issued a show-cause notice to the bank.
After examining the bank's response and considering submissions made during a personal hearing, RBI found that the bank had sanctioned loans related to its directors, contravening statutory provisions. ...