Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
30 Oct 2025
Case Brief
By an order dated October 23, 2025, RBI imposed a monetary penalty of ₹1 lakh on Parner Taluka Sainik Sahakari Bank Ltd., Parner, Maharashtra. The penalty was for non-compliance with RBI directions on 'Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs'. RBI said the bank had regularised certain non-performing assets without repayment through genuine sources. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection, show-cause process, and consideration of the bank's reply and hearing submissions.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found that Parner Taluka Sainik Sahakari Bank Ltd. had non-complied with RBI directions on 'Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs'. The sustained charge was that the bank regularised certain non-performing assets without repayment through genuine sources. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a show-cause notice, the bank's written reply, additional submissions, and oral hearing.
Operating Impact
The bank must absorb the monetary penalty and may face further supervisory action, as RBI expressly stated the penalty is without prejudice to any other action. There is no stated operational restriction in this release, but the finding may affect ongoing regulatory scrutiny of the bank's asset classification and provisioning practices.
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
- 23 Oct 2025
- Effective From
- 23 Oct 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank