India, Aug. 25 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.50 lakh on Shri Vijay Mahantesh Co-operative Bank Ltd, Hungund, Karnataka, for non-compliance with regulatory norms concerning income recognition, asset classification, provisioning and loans to directors and their related entities.
The penalty was imposed through an order dated August 20, 2026, under the provisions of the Banking Regulation Act, 1949.
The action followed an RBI statutory inspection of the bank's financial position as of March 31, 2025. After reviewing the bank's response to the show-cause notice and submissions made during a personal hearing, the central bank found two regulatory lapses.
The bank was found to have failed to classify...