**Executive Summary**
This press release, dated December 29, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The District Co-operative Central Bank Ltd., Warangal, Telangana. The penalty was ordered on December 26, 2025, due to contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹1 lakh on The District Co-operative Central Bank Ltd., Warangal, Telangana.
* The order was dated December 26, 2025.
* **Reason for Penalty:**
* The penalty is for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act).
* The penalty was imposed in exercise of powers conferred on RBI under provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
* **Inspection and Findings:**
* The statutory inspection was conducted by NABARD with reference to the bank's financial position as on March 31, 2025.
* A notice was issued to the bank advising it to show cause as to why penalty should not be imposed.
* RBI found the charge against the bank was sustained warranting imposition of a monetary penalty.
* **Nature of Contravention:**
* The bank had sanctioned director related loans.
* **Disclaimer:**
* The action is based on deficiencies in statutory compliance.
* The penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**The District Co-operative Central Bank Ltd., Warangal, Telangana**
**Impact**
The bank is directly impacted by the monetary penalty of ₹1 lakh. This could affect its profitability and reputation.
**Action Required**
The bank must pay the monetary penalty and review its practices to ensure compliance with Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). They should also address any other deficiencies in statutory compliance to avoid further penalties.
**Reserve Bank of India (RBI)**
**Impact**
RBI is acting as the regulator to enforce compliance and maintain the integrity of the banking system.
**Action Required**
RBI will monitor the bank's compliance with the penalty order and may initiate further action if necessary.
**Customers of the District Co-operative Central Bank Ltd., Warangal, Telangana**
**Impact**
According to the document, 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.
Key Entities Referenced
Reserve Bank of India (RBI): Imposing monetary penalty for contravention of provisions
The District Co-operative Central Bank Ltd., Warangal, Telangana: The bank on which the monetary penalty is imposed
Banking Regulation Act, 1949 (BR Act): The law under which the penalty is imposed, specifically Section 20 read with Section 56 and Section 47A(1)(c) read with Sections 46(4)(i) and 56
National Bank for Agriculture and Rural Development (NABARD): Conducted the statutory inspection of the bank
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ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 29, 2025
RBI imposes monetary penalty on The District Co-operative Central Bank Ltd.,
Warangal, Telangana
The Reserve Bank of India (RBI) has, by an order dated December 26, 2025,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The District Co-
operative Central Bank Ltd., Warangal, Telangana (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, 2025. 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 director related loans.
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: 2025-2026/1790 Chief General Manager