RBI has imposed a monetary penalty of ₹1 lakh on The Tumkur District Co-operative Central Bank Limited, Karnataka, via order dated October 22, 2025, for contravention of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949. 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 the bank's financial position as of March 31, 2024. The action is based on deficiencies in statutory compliance, specifically, the bank sanctioned a loan to one of its directors. This penalty does not impact the validity of transactions with customers and is without prejudice to any other action that RBI may initiate.
The press release number is 2025-2026/1395. For more information, contact the Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001, Phone: 022 - 2266 0502. Website: www.rbi.org.in, Email: helpdoc@rbi.org.in. The Chief General Manager is (Brij Raj). The date of the press release is October 27, 2025.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed monetary penalty.
Banking Regulation Act, 1949 (BR Act): Law contravened, specifically sections 20, 56, 47A(1)(c), and 46(4)(i)
The Tumkur District Co-operative Central Bank Limited, Karnataka: Bank penalized for contravening the Banking Regulation Act.
National Bank for Agriculture and Rural Development (NABARD): Conducted the statutory inspection of the bank.
Karnataka: Location of the penalized bank
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
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
October 27, 2025
RBI imposes monetary penalty on The Tumkur District Co-operative Central Bank
Limited, Karnataka
The Reserve Bank of India (RBI) has, by an order dated October 22, 2025, imposed
a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Tumkur District Co-
operative Central Bank Limited, Karnataka (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: 2025-2026/1395 Chief General Manager