Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
29 Jan 2026
Case Brief
RBI, by order dated January 23, 2026, imposed a monetary penalty of ₹50,000 on Rajapur Urban Co-operative Bank Ltd., Rajapur, Maharashtra. The penalty followed a statutory inspection for the bank’s financial position as on March 31, 2025, which found non-compliance with RBI directions on loans and advances to directors, their relatives, and related firms/concerns. RBI stated that the sustained charge was that the bank sanctioned a loan to the relative of one of its directors. 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 found non-compliance with RBI directions governing loans and advances to directors, their relatives, and firms/concerns in which they are interested. The sustained charge was that the bank sanctioned a loan to the relative of one of its directors. 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; the release does not announce any additional operational restriction, suspension, or cancellation. RBI also noted that the penalty is without prejudice to any other action that may be initiated separately.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 23 Jan 2026
- Effective From
- 23 Jan 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank