On November 24, 2025, the Reserve Bank of India (RBI) announced a monetary penalty of ₹1 lakh on The District Co-operative Central Bank Limited, Kakinada, Andhra Pradesh, due to contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. The statutory inspection was conducted by NABARD with reference to its financial position as on March 31, 2024. The press release number is 2025-2026/1556. Brij Raj, Chief General Manager. Website: www.rbi.org.in. E-mail: helpdoc@rbi.org.in. Phone: 022-2266 0502. Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001
Key Entities Referenced
Reserve Bank of India (RBI): Imposes a monetary penalty and has powers conferred by the Banking Regulation Act.
Banking Regulation Act, 1949 (BR Act): The primary law under which the penalty is imposed. Specific sections are cited.
The District Co-operative Central Bank Limited, Kakinada, Andhra Pradesh: The bank on which the monetary penalty has been imposed.
Sections 20 read with Section 56: Sections of the Banking Regulation Act contravened by the bank.
National Bank for Agriculture and Rural Development (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
November 24, 2025
RBI imposes monetary penalty on The District Co-operative Central Bank
Limited, Kakinada, Andhra Pradesh
The Reserve Bank of India (RBI) has, by an order dated November 20, 2025,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The District Co-
operative Central Bank Limited, Kakinada, Andhra Pradesh (the bank) for
contravention of 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 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 loan to one of 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 into by the bank
with its customers. Further, imposition of this monetary penalty is without prejudice to
any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1556 Chief General Manager