India, Oct. 6 -- The Reserve Bank of India (RBI), in an order dated September 29, 2025, has imposed a monetary penalty of Rs 5.5 lakh on The Bagalkot District Central Co-operative Bank Ltd., Karnataka for violating provisions of Sections 20 and 56 of the Banking Regulation Act, 1949 and for non-compliance with NABARD directions on the Offsite Surveillance System (OSS). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
The statutory inspection, referencing the bank's financial position as of March 31, 2024, found lapses, and a show-cause notice was issued. After reviewing the bank's reply and oral submissions, RBI found the bank had:
Sanctioned director-related loans; and
Failed to submit ce...