On September 15, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹1 lakh on Yavatmal District Central Cooperative Bank Ltd., Maharashtra, for contravention of Section 20 read with Section 56 of the Banking Regulation Act, 1949. The penalty was imposed under the powers conferred by Section 47A(1)(c) and Section 46(4)(i) read with Section 56 of the BR Act. The action follows a statutory inspection by NABARD as of March 31, 2024, which revealed that the bank had sanctioned director related loans. The RBI issued a show cause notice to the bank, and after considering the bank's response and submissions, the RBI sustained the charge. The imposition of the penalty is for deficiencies in statutory compliance and does not affect the validity of transactions with customers, nor does it prejudice any other action RBI may take against the bank. Contact information for the Department of Communication, Central Office, is available at Shahid Bhagat Singh Marg, Fort, Mumbai 400 001, email helpdocrbi.org.in, and phone 022 2266 0502. The Press Release number is 2025-2026/1121. The Chief General Manager is Puneet Pancholy.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Yavatmal District Central Cooperative Bank Ltd., Maharashtra: The bank on which the monetary penalty was imposed.
Banking Regulation Act, 1949 (BR Act): The act under which the penalty was imposed, specifically sections 20, 56, 47A(1)(c), and 46(4)(i).
National Bank for Agriculture and Rural Development (NABARD): The entity that 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
September 18, 2025
RBI imposes monetary penalty on Yavatmal District Central
Co-operative Bank Ltd., Maharashtra
The Reserve Bank of India (RBl) has, by an order dated September 15, 2025,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Yavatmal District
Central Co-operative Bank Ltd., Maharashtra (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) and Section 46(4)(i) read with Section 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, additional submissions made by it 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.
(Puneet Pancholy)
Press Release: 2025-2026/1121 Chief General Manager