Recorded RBI impact
Fine: Rs 2.10 L
Monetary penalty · Fresh imposition
Published by RBI
18 Jun 2026
Case Brief
By an order dated June 12, 2026, RBI imposed a monetary penalty on The Nasik Road Deolali Vyapari Sahakari Bank Ltd., Nashik for non-compliance with RBI directions on loans and advances to directors, their relatives, and related firms/concerns. Following a statutory inspection and show-cause proceedings, RBI sustained the charge that the bank had sanctioned loans to the relatives of its directors, and invoked 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 directions issued on 'Loans and Advances to Directors, their Relatives, and Firms / Concerns in which they are Interested'. The sustained charge was that the bank had sanctioned loans to the relatives of its directors, in violation of 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 the action underscores continued compliance obligations around lending to directors and their connected parties. The order does not itself describe a new operational restriction, but RBI noted that the penalty is without prejudice to any further action it may initiate.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 2.10 L
- Order Date
- 12 Jun 2026
- Effective From
- 12 Jun 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank