RBI imposes monetary penalty on Shri Vijay Mahantesh Co-operative Bank Limited, Hungund, Karnataka

On August 20, 2026, the Reserve Bank of India (RBI) issued a monetary penalty of ₹2.50 lakh to Shri Vijay Mahantesh Co-operative Bank Limited, located in Hungund, Karnataka. The penalty was imposed due to the bank's non-compliance with guidelines on 'Income Recognition, Asset Classification, Provisioning, and Other Related Matters' and 'Loans and Advances to Directors, Their Relatives, and Firms/Concerns in Which They Have an Interest.'

This decision was based on the RBI's statutory inspection of the bank's financial position as of March 31, 2025, and subsequent supervisory findings. The RBI found that the bank had failed to correctly classify certain loan accounts as non-performing assets (NPAs) and had sanctioned loans to directors and their relatives. The penalty was imposed to address regulatory compliance deficiencies, without affecting the validity of any transactions or agreements between the bank and its customers. The RBI reserves the right to take additional action against the bank if deemed necessary.