**Summary:**
On September 3, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹2.10 lakh (Two Lakh Ten Thousand only) on Raigad District Central Coop Bank Ltd, Maharashtra, for contravention of Section 20 of the Banking Regulation Act, 1949 (BR Act). The penalty was levied under the powers conferred on the RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. The action followed a statutory inspection by the National Bank for Agriculture and Rural Development (NABARD) referencing the bank's financial position as of March 31, 2024. The RBI found that the bank had sanctioned/renewed loans to its directors, violating statutory provisions. A show cause notice was issued to the bank, and after considering the bank's response and oral submissions, the RBI determined that the imposition of a monetary penalty was warranted. This action is based on deficiencies in statutory compliance and does not reflect on the validity of transactions with customers. The imposition of this penalty does not preclude any other actions that the RBI may initiate against the bank. Contact: Puneet Pancholy, Chief General Manager. Press Release: 2025-2026/1060.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Raigad District Central Coop Bank Ltd, Maharashtra: A cooperative bank in Maharashtra, India, which was penalized by the RBI.
Banking Regulation Act, 1949: Indian law regulating banking companies.
Section 20 of the Banking Regulation Act, 1949: Section of the Banking Regulation Act, 1949 which was contravened.
Section 47A1c read with Sections 464i and 56 of the BR Act: Sections of the Banking Regulation Act, 1949 which confers powers on RBI.
National Bank for Agriculture and Rural Development: An apex development finance institution in India.
March 31, 2024: Date on which NABARD conducted inspection of Raigad District Central Coop Bank Ltd, Maharashtra.
Puneet Pancholy: Chief General Manager.
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
September 09, 2025
RBI imposes monetary penalty on Raigad District Central Co-op Bank Ltd,
Maharashtra
The Reserve Bank of India (RBI) has, by an order dated September 03, 2025,
imposed a monetary penalty of ₹2.10 lakh (Rupees Two Lakh Ten Thousand only) on
Raigad District Central Co-op Bank Ltd, Maharashtra (the bank), for contravention of
provisions of Section 20 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 National Bank for
Agriculture and Rural Development (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 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/renewed loans to its directors.
This action is based on deficiencies in statutory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered 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.
(Puneet Pancholy)
Press Release: 2025-2026/1060 Chief General Manager