Nagar Sahkari Bank Ltd., Maharajganj (Uttar Pradesh)

Based on a statutory inspection conducted with reference to the bank's financial position as on March 31, 2025, RBI found that Nagar Sahkari Bank Ltd., Maharajganj had failed to comply with directions on Income Recognition, Asset Classification and Provisioning and Other Related Matters, Exposure Norms and Statutory/Other Restrictions, Membership of Credit Information Companies (CICs), and Management of Advances. The sustained charges included not classifying certain credit facilities as NPAs, incorrectly classifying certain NPAs, not identifying NPAs on an ongoing basis, breaching prescribed regulatory ceilings on unsecured advances at individual and aggregate levels, not uploading borrower credit information to CICs, and not taking suitable precautions to avoid deficiencies in certain credit sanctions. RBI imposed the monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 and Section 25 read with Section 23 of the Credit Information Companies (Regulation) Act, 2005.

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI, especially around NPA recognition, unsecured exposure limits, CIC reporting, and credit sanction controls. The order itself does not bar operations, but it signals ongoing supervisory scrutiny and the possibility of further action if deficiencies persist.