Monetary Penalty on Kolhapur District Central Co-op Bank Ltd., Maharashtra · 2026-2027/717
RBI press-release 2026-2027/717 · 20 Jul 2026
Official title
RBI imposes monetary penalty on Kolhapur District Central Co-op Bank Ltd., Maharashtra
RBI press-release 2026-2027/717 · 20 Jul 2026
Official title
RBI imposes monetary penalty on Kolhapur District Central Co-op Bank Ltd., Maharashtra
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹13.30 lakh on Kolhapur District Central Co-op Bank Ltd., Maharashtra, for non-compliance with section 20(1) read with section 56 of the Banking Regulation Act, 1949. The penalty follows a statutory inspection by the National Bank for Agriculture and Rural Development regarding the bank's financial position as of March 31, 2025. The RBI determined that the bank had sanctioned director-related loans. The bank was issued a show-cause notice and provided an opportunity for a personal hearing before the final order was issued on July 17, 2026. This action is based on deficiencies in statutory compliance and does not affect the validity of any customer transactions.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
July 17, 2026
RBI imposes monetary penalty on Kolhapur District Central Co-op Bank Ltd., Maharashtra
The Reserve Bank of India (RBI) has, by an order dated July 17, 2026, imposed a monetary penalty of ₹13.30 lakh (Rupees Thirteen Lakh Thirty Thousand only) on Kolhapur District Central Co-op Bank Ltd., Maharashtra (the bank) for non- compliance with certain provisions of section 20(1) 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 with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with 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: 2026-2027/717 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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