RBI Penalises Tumkur Grain Merchants Co-operative Bank for Regulatory Non-Compliance
RBI has taken regulatory action against Tumkur Grain Merchants Co-operative Bank for violations under the Supervisory Action Framework.
BENGALURU, November 24, 2025 — The Reserve Bank of India (RBI) has imposed a penalty on Tumkur Grain Merchants Co-operative Bank Limited, Karnataka, for non-compliance with regulatory directions issued under the Supervisory Action Framework (SAF).
The decision follows a statutory inspection conducted with reference to the bank’s financial position as on March 31, 2024. Based on the supervisory findings and subsequent review of the bank’s written explanation and oral submissions, RBI concluded that violations had occurred under SAF.
According to the central bank, the violations included sanctioning fresh loans with risk weights above 100%, offering fixed deposit interest rates higher than those of the State Bank of India, and extending credit facilities to sectors with high levels of non-performing assets.
RBI noted that the action is based solely on deficiencies in regulatory compliance and does not evaluate the legitimacy of any agreements or transactions undertaken by the bank with its customers. The regulator added that the penalty is without prejudice to any further supervisory actions that may be taken.