Sangli District Central Cooperative Bank Ltd

The Reserve Bank of India imposed a penalty of ₹7 lakh on Sangli District Central Cooperative Bank Ltd, Maharashtra, for contravention of Section 20(1) of the Banking Regulation Act, 1949. The bank had sanctioned loans to director-related entities. 60 lakh levied on four cooperative banks.

Section 20(1) restricts banks from granting loans and advances to their directors or entities in which directors hold an interest. The RBI stated the penalty is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into with the bank's customers.