The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.50 lakh on The District Co-operative Central Bank Ltd., Bidar, Karnataka, for violations of the Banking Regulation Act, 1949. The order, dated September 3, 2025, cites contraventions of Sections 20 and 31 read with Section 56 of the Act.

The action follows a statutory inspection by NABARD, based on the bank’s financial position as of March 31, 2024. RBI noted that the bank had sanctioned director-related loans and failed to publish and furnish its accounts for FY24 within the stipulated time.

RBI clarified that the penalty pertains to compliance deficiencies and does not affect the validity of transactions or agreements entered into by the bank with its customers. The central bank also reserved the right to initiate further action, if necessary.