The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on Rajapur Urban Co-operative Bank Ltd., Rajapur, Maharashtra, for non-compliance with RBI directions on loans and advances to directors, their relatives, and firms or concerns in which they are interested.
The penalty was imposed through an order dated January 23, 2026, in exercise of powers conferred on the RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The action followed a statutory inspection of the bank with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance and subsequent correspondence, the RBI issued a show-cause notice to the bank, seeking an explanation as to why a monetary penalty should not be imposed.
After examining the bank’s reply and additional submissions, the RBI found that the charge was sustained. The inspection revealed that the bank had sanctioned a loan to a relative of one of its directors, in violation of RBI norms.
