India, June 23 -- The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on The Shimoga District Co-operative Central Bank Ltd. for contravening provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The action 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. Following supervisory findings and subsequent correspondence, RBI issued a show-cause notice to the bank seeking an explanation for the violations.
After reviewing the bank's response and oral submissions during a personal hearing, RBI found that the bank had sanctioned and renewed loans related to its directors, in violation of statut...