RBI imposes monetary penalty on The District Co-operative Central Bank Ltd., Warangal, Telangana

**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, due to contravention of statutory provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed following a statutory inspection by NABARD and a subsequent show cause notice. **Key Points / Main Content** * **Penalty Imposition:** * 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. * **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). * Specifically, the bank had sanctioned director-related loans. * **RBI Authority:** * The penalty is imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. * **Inspection and Process:** * NABARD conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025. * A show cause notice was issued to the bank regarding the penalty. * RBI considered the bank's reply and oral submissions before imposing the penalty. * **Disclaimer:** * The action is based on deficiencies in statutory compliance. * The penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. * The imposition of 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:** Monetary penalty of ₹1 lakh; Potential impact on reputation; Scrutiny of internal processes and procedures. * **Action Required:** Payment of penalty; Review and correction of statutory compliance deficiencies; Prevent similar contraventions in the future. **Customers of The District Co-operative Central Bank Ltd., Warangal, Telangana** * **Impact:** The document mentions that this action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. This suggests no direct impact on the customers. * **Action Required:** No action is required. **Reserve Bank of India (RBI)** * **Impact:** Enforcement of regulatory compliance in the banking sector. * **Action Required:** Monitor the bank's corrective actions; Take further action if necessary.

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