Monetary Penalty on Shri Vijay Mahantesh Co-operative Bank Limited
RBI press-release 2026-2027/955 · 24 Aug 2026
Official title
RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka
RBI press-release 2026-2027/955 · 24 Aug 2026
Official title
RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹2.50 lakh on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka. The bank failed to comply with RBI directions on income recognition, asset classification, and provisioning. The bank also failed to comply with directions on loans and advances to directors and their relatives. The RBI conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025. The bank failed to classify specific loan accounts as non-performing assets and sanctioned director-related loans. This action follows a show cause notice and a personal hearing process.
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August 24, 2026
RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka
The Reserve Bank of India (RBI) has, by an order dated August 20, 2026, imposed a monetary penalty of ₹2.50 lakh (Rupees Two lakh Fifty thousand only) on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs’ and ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’. 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 Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions 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 directions. After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had: i. failed to classify certain loan accounts as non-performing assets (NPAs); and ii. sanctioned director related loans.
This action is based on deficiencies in regulatory 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: 2026-2027/955 Chief General Manager
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