Reserve Bank of India has imposed a monetary penalty of Rs 16.30 lakh on Shree Kadi Nagarik Sahakari Bank Ltd. for non-compliance with regulatory directions related to exposure norms and loan management.
In an order dated May 6, 2026, the RBI said the Gujarat-based urban cooperative bank violated norms prescribed under “Exposure Norms and Statutory / Other Restrictions – UCBs” and “Management of Advances- UCBs”. The penalty was imposed under the provisions of the Banking Regulation Act, 1949.
According to the RBI, the action followed a statutory inspection conducted with reference to the bank’s financial position as on March 31, 2025.
During the inspection, the central bank found that the cooperative bank had breached prudential exposure limits for a group of connected borrowers and failed to ensure proper end-use monitoring of certain loans sanctioned by it.
After reviewing the bank’s written response and oral submissions during a personal hearing, the RBI concluded that the violations warranted monetary penalty.
The RBI clarified that the action relates solely to regulatory compliance deficiencies and does not affect the validity of transactions or agreements entered into by the bank with its customers. The central bank also said the penalty is without prejudice to any further action that may be initiated against the bank.
