Shree Siddhivinayak Nagari Sahakari Bank Ltd., Raigad

The Reserve Bank of India imposed a penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies) after finding the bank had violated RBI directive/guidelines on single-party credit exposure; granting loans to directors, their relatives, or firms in which they were interested; fraudulently created deposits; fictitious credits from head-office accounts to loan accounts; understatement of liabilities; non-adherence to KYC norms; and failure to properly risk-categorize customers. RBI had issued a show-cause notice, considered the bank's written reply, and concluded the violations were substantiated and warranted the penalty.

The bank must absorb the monetary penalty; the release does not mention any operational restriction, but it signals regulatory findings on governance, lending controls, KYC compliance, and accounting integrity. Customers and counterparties are not directly restricted by this order, though the bank is expected to correct the identified compliance weaknesses going forward.