Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 May 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on Pandharpur Urban Co-operative Bank Ltd., Pandharpur, Maharashtra, by order dated April 29, 2026. The action followed a statutory inspection with reference to the bank's financial position as on March 31, 2025, and supervisory findings of non-compliance with RBI directions on asset classification and treatment of non-performing assets. RBI stated that the sustained charge was that the bank sanctioned additional credit facilities to certain borrowers for repayment of their existing non-performing loans. 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 findings showed non-compliance with its directions on 'Asset classification and treatment of accounts as Non-Performing Assets'. The specific sustained charge was that the bank had sanctioned additional credit facilities to certain borrowers for repayment of their existing non-performing loans, contrary to the applicable RBI 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 monetary penalty and remain exposed to any further supervisory or enforcement action RBI may initiate on the same or related compliance issues. There is no stated operational restriction in this release, but the finding may affect the bank's regulatory standing and future compliance scrutiny.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 29 Apr 2026
- Effective From
- 29 Apr 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank