Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Jan 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra by order dated January 13, 2026. RBI said the bank had violated directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs' by sanctioning loans in excess of the prescribed regulatory limit to certain nominal members. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after statutory inspection and consideration of the bank's reply, additional submissions, and oral hearing.
Why RBI Acted
RBI imposed a monetary penalty on The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty was based on supervisory findings that the bank had not complied with RBI directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs'; specifically, it sanctioned loans in excess of the prescribed regulatory limit to certain nominal members.
Operating Impact
The bank must absorb the monetary penalty and ensure future lending complies with RBI exposure limits for nominal members. No broader operational restriction was announced in this release, but the finding leaves the bank exposed to any further regulatory action RBI may choose to initiate.
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
- 13 Jan 2026
- Effective From
- 13 Jan 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank