**Summary:**
On September 3, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹5.50 lakh (Rupees Five Lakh Fifty Thousand only) on The District Cooperative Central Bank Ltd, Bidar, Karnataka, for contravention of provisions of Sections 20 and 31 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty is imposed 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 follows 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 (i) sanctioned director-related loans and (ii) failed to publish its accounts and balance sheet for the Financial Year 2023-24 and furnish copies to the RBI/NABARD within the prescribed timeline. The decision was made after considering the bank's response to a show-cause notice and oral submissions during a personal hearing.
The RBI clarifies that this action is based on deficiencies in statutory compliance and does not assess the validity of any transaction or agreement between the bank and its customers. The imposition of this penalty does not preclude any further action by the RBI against the bank.
For further information, contact:
Puneet Pancholy
Chief General Manager
Department of Communication, Central Office
Reserve Bank of India
Shahid Bhagat Singh Marg, Fort, Mumbai 400 001
Phone: 022 2266 0502
Email: helpdoc@rbi.org.in
Website: www.rbi.org.in
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking sector.
The District Cooperative Central Bank Ltd, Bidar, Karnataka: A cooperative bank located in Bidar, Karnataka, which was penalized by the RBI.
Banking Regulation Act, 1949: An act of the Parliament of India to regulate banking companies in India.
National Bank for Agriculture and Rural Development: An apex development finance institution in India.
Mumbai, Maharashtra: The location of the Central Office of the Reserve Bank of India.
Section 20 of the Banking Regulation Act, 1949: A section of the Banking Regulation Act, 1949 related to restrictions on loans and advances.
Section 31 of the Banking Regulation Act, 1949: A section of the Banking Regulation Act, 1949 related to publication of accounts and balance sheet.
Section 56 of the Banking Regulation Act, 1949: A section of the Banking Regulation Act, 1949, relating to the applicability of the Act to cooperative societies.
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 The District Co-operative Central Bank Ltd,
Bidar, Karnataka
The Reserve Bank of India (RBI) has, by an order dated September 03, 2025,
imposed a monetary penalty of ₹5.50 lakh (Rupees Five Lakh Fifty Thousand only)
on The District Co-operative Central Bank Ltd, Bidar, Karnataka (the bank) for
contravention of provisions of Sections 20 and 31 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 charges against the bank were sustained, warranting imposition of
monetary penalty:
The bank had:
i) sanctioned director related loans; and
ii) failed to publish its accounts and balance-sheet for the Financial Year 2023-24
and also to furnish the copies thereof to RBI / NABARD within the prescribed
timeline.
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.
(Puneet Pancholy)
Press Release: 2025-2026/1059 Chief General Manager