Regulatory Alerts2026-08-24
Added
RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka
The Reserve Bank of India imposed a monetary penalty of ₹2.50 lakh on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka, for non-compliance with directions on income recognition, asset classification, provisioning, and loans to directors. The penalty stems from supervisory findings that the bank failed to classify certain loan accounts as non-performing assets and sanctioned director-related loans. This action was taken under sections 47A(1)(c), 46(4)(i), and 56 of the Banking Regulation Act, 1949, following a statutory inspection of the bank's financial position as of March 31, 2025.
Search the Website
( 332 kb ) Date : Aug 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:
failed to classify certain loan accounts as non-performing assets (NPAs); and
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)
Chief General Manager
Press Release: 2026-2027/955
2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 Archives
Top
Back to previous page
More like this from RBI
RBI published 86 documents in the last 30 days. We email you each new one the day it's published.