India, June 19 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.5 lakh on The Chitradurga District Co-operative Central Bank Ltd. for violating provisions of the Banking Regulation Act, 1949, and failing to comply with certain Know Your Customer (KYC) norms.
The action follows a statutory inspection conducted by National Bank for Agriculture and Rural Development with reference to the bank's financial position as of March 31, 2025. Based on the inspection findings, RBI issued a show-cause notice to the bank seeking an explanation for the regulatory lapses.
After reviewing the bank's response and submissions during a personal hearing, RBI found that the bank had sanctioned loans to entities related to its directors...