The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra, for non-compliance with regulatory directions related to exposure norms and statutory restrictions applicable to Urban Co-operative Banks (UCBs).
The penalty was imposed through an order dated January 13, 2026, under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The action follows a statutory inspection conducted by RBI with reference to the bank’s financial position as on March 31, 2025. During the inspection, supervisory findings revealed violations of RBI directions. After issuing a show-cause notice and considering the bank’s written and oral submissions, RBI concluded that the bank had sanctioned loans exceeding the prescribed regulatory limits to certain nominal members.
RBI clarified that the penalty is based solely on compliance deficiencies and does not affect the validity of customer transactions. The action is without prejudice to any further regulatory measures that may be initiated.
