Recorded RBI impact
Fine: Rs 10.0 L
Monetary penalty · Fresh imposition
Published by RBI
13 Jul 2026
Case Brief
RBI, by order dated June 29, 2026, imposed a monetary penalty of ₹10 lakh on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra, following a statutory inspection with reference to its financial position as of March 31, 2025. The penalty was imposed after RBI found sustained non-compliance with its directions and related correspondence; the upheld charge was that the bank sanctioned a loan to one of its directors, contrary to Section 20(1) of the Banking Regulation Act, 1949, and the penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and supervisory review found sustained non-compliance with RBI directions. The specific charge upheld was that Ashok Sahakari Bank Ltd. sanctioned a loan to one of its directors, contrary to Section 20(1) of the Banking Regulation Act, 1949. RBI issued a show-cause notice, considered the bank’s reply, and then imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Operating Impact
The bank must absorb the financial penalty and remain exposed to any additional supervisory or enforcement action RBI may initiate. The release does not impose an operational restriction, but it signals continued regulatory scrutiny over lending to directors and related compliance controls.
Regulatory Basis
- Section 20(1) of the Banking Regulation Act, 1949
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 10.0 L
- Order Date
- 29 Jun 2026
- Effective From
- 29 Jun 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank