RBI Fine on BDCC Bank for Regulatory Violations The Reserve Bank of India has imposed a ₹2 lakh penalty on Belagavi District Central Cooperative Bank for non-compliance with critical loan disbursal norms. The violations span six to seven years and include illegal loans to directors, excessive gold loan exposure under bullet repayment schemes, and unauthorized lending to non-residential commercial real estate projects. These breaches violated the Banking Regulation Act provisions and RBI directives on gold loans and commercial real estate exposure. The bank admitted to the violations following investigations by NABARD and RBI officials. The penalty reflects serious deficiencies in statutory and regulatory compliance, highlighting governance failures during the previous management period.
