Monetary Penalty on Mandya District Co-operative Central Bank Ltd., Karnataka
RBI press-release 2026-2027/740 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Mandya District Co-operative Central Bank Ltd., Karnataka
RBI press-release 2026-2027/740 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Mandya District Co-operative Central Bank Ltd., Karnataka
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹50,000 on Mandya District Co-operative Central Bank Ltd., Karnataka, for violating section 19 read with section 56 of the Banking Regulation Act, 1949. The penalty follows a statutory inspection by NABARD regarding the bank's financial position as of March 31, 2025, which identified that the bank held shares in other co-operative societies in contravention of the Act. Following a show-cause notice and personal hearing, the RBI determined the charge was sustained. This regulatory action is based on compliance deficiencies and does not affect the validity of the bank's transactions with its customers.
Key dates
Who is affected
Thresholds
If you do not comply
July 23, 2026
RBI imposes monetary penalty on Mandya District Co-operative Central Bank Ltd., Karnataka
The Reserve Bank of India (RBI) has, by an order dated July 17, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty thousand only) on Mandya District Co- operative Central Bank Ltd., Karnataka (the bank) for contravention of provisions of section 19 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 held shares in other co-operative societies in contravention of BR Act.
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: 2026-2027/740 Chief General Manager
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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