**Executive Summary**
This press release from the Reserve Bank of India (RBI), dated December 29, 2025, announces a monetary penalty of ₹2.10 lakh imposed on Kolhapur District Central Co-operative Bank Ltd. for contravention of statutory provisions. The penalty was issued on December 22, 2025, following a statutory inspection by NABARD and subsequent findings. The action is based on deficiencies in statutory compliance.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI has imposed a monetary penalty of ₹2.10 lakh on Kolhapur District Central Co-operative Bank Ltd.
* The penalty was imposed on December 22, 2025.
* **Reason for Penalty:**
* The penalty is for contravention of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
* The penalty is imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
* **Background:**
* The penalty was based on statutory inspection of the bank by NABARD as of March 31, 2024.
* A notice was issued to the bank, and their response and additional submissions were considered.
* The bank sanctioned a loan to a company in which one of the bank's directors stood as guarantor.
* **Disclaimer:**
* The action is based on deficiencies in statutory compliance.
* It is not intended to pronounce upon the validity of transactions or agreements with customers.
* The penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Kolhapur District Central Co-operative Bank Ltd.**
* **Impact:** Financial penalty of ₹2.10 lakh; potential reputational damage.
* **Action Required:** Pay the penalty amount; review and strengthen compliance procedures to avoid future violations.
**Customers of Kolhapur District Central Co-operative Bank Ltd.**
* **Impact:** The press release clarifies that the action is not intended to pronounce upon the validity of transactions or agreements with the bank.
* **Action Required:** Be aware that action is not intended to invalidate customers agreements with the bank.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty.
Banking Regulation Act, 1949 (BR Act): The act under which the penalty was imposed, specifically Section 20 read with Section 56.
Kolhapur District Central Co-operative Bank Ltd., Kolhapur, Maharashtra: The bank on which the monetary penalty was imposed.
NABARD: Conducted the statutory inspection of the bank.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 29, 2025
RBI imposes monetary penalty on Kolhapur District Central Co-operative Bank
Ltd., Kolhapur, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated December 22, 2025,
imposed a monetary penalty of ₹2.10 lakh (Rupees Two Lakh Ten Thousand only) on
Kolhapur District Central Co-operative Bank Ltd., Kolhapur, Maharashtra (the bank) for
contravention of the provisions of Section 20 read with Section 56 of the Banking
Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers
conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i)
and 56 of the BR Act.
The statutory inspection of the bank was conducted by NABARD with reference to
its financial position as on March 31, 2024. Based on supervisory findings of
contravention of statutory provisions and related correspondence in that regard, a
notice was issued to the bank advising it to show cause as to why penalty should not
be imposed on it for its failure to comply with the said provisions. After considering the
bank’s reply to the notice, additional submissions made by it and oral submissions
made during the personal hearing, RBI found, inter alia, that the following charge
against the bank was sustained, warranting imposition of monetary penalty:
The bank had sanctioned a loan to a company, in which one of the Directors of the
bank stood as a guarantor.
This action is based on deficiencies in statutory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered into by the bank
with its customers. Further, imposition of monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1792 Chief General Manager