Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 16.30 lakh on Shree Kadi Nagarik Sahakari Bank Ltd., Dist. Mehsana, Gujarat, by order dated May 06, 2026. The penalty was based on supervisory findings from a statutory inspection with reference to the bank's financial position as on March 31, 2025. RBI said the bank had not complied with directions on Exposure Norms and Statutory / Other Restrictions – UCBs and Management of Advances - UCBs. Specifically, the bank breached the prudential exposure limit prescribed for a group of connected borrowers/parties and failed to ensure end-use of funds for certain loans it sanctioned. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.