The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on Mandya District Co-operative Central Bank Ltd., Karnataka, for violating provisions of the Banking Regulation Act, 1949.

The penalty, imposed through an order dated July 17, 2026, follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) based on the bank's financial position as of March 31, 2025.

According to the RBI, the bank held shares in other co-operative societies in contravention of the Banking Regulation Act, resulting in the regulatory action. After considering the inspection findings, the bank's response to the show-cause notice, and oral submissions made during the personal hearing, the central bank concluded that the violation warranted the imposition of a monetary penalty.

The RBI clarified that the penalty is based solely on deficiencies in statutory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers. It also stated that the action is without prejudice to any further regulatory measures that may be initiated against the bank.