The RBI has imposed penalties totaling ₹5 lakh on The Shimoga District Co-operative Central Bank and The Chittoor District Co-operative Central Bank for contraventions of the Banking Regulation Act.
Penalties on Shimoga and Chittoor District Co-operative Banks
On June 15, 2026, the RBI imposed a penalty of ₹1 lakh each on The Shimoga District Co-operative Central Bank Ltd., Karnataka, and The Chittoor District Co-operative Central Bank Ltd., Andhra Pradesh. This action was due to confirmed contraventions of provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949.
The penalties were enforced under the provisions outlined in Section 47A(1)(c) of the Banking Regulation Act, showcasing the regulatory authority's commitment to uphold compliance within the cooperative banking sector.
These actions not only highlight the RBI's role in overseeing compliance but also serve as a crucial reminder for co-operative banks to adhere to the stipulated banking regulations to avoid punitive measures.
Banking professionals working with district co-operative banks should take heed of these developments and ensure rigorous compliance mechanisms are in place to mitigate risks associated with regulatory violations.
Citations
- RBI Penalty Order (2026)
