Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
20 Jul 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on Manmad Urban Co-operative Bank Ltd., Manmad, Maharashtra, following a statutory inspection and supervisory review. RBI found non-compliance with its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, and specifically sustained the charge that the bank had sanctioned loans to the relative of its director. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection and supervisory review found non-compliance with RBI directions on 'Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested'. The sustained charge was that the bank had sanctioned loans to the relative of its director, in contravention of the applicable directions. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the penalty and remain compliant with RBI’s directions on related-party lending and director-linked exposures. The action does not itself impose an operational restriction, but it signals supervisory concern and may be followed by further RBI action if non-compliance persists.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 17 Jul 2026
- Effective From
- 17 Jul 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank