Uttarkashi Zila Sahkari Bank Ltd., Uttarkashi

RBI imposed a monetary penalty on Uttarkashi Zila Sahkari Bank Ltd. under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty followed NABARD’s statutory inspection with reference to the bank’s financial position as on March 31, 2023, and RBI’s supervisory findings that the bank had contravened section 20(1) and section 26A(2) read with section 56 of the BR Act by sanctioning loans to individuals where one of its directors acted as guarantor and by not transferring eligible amounts to the Depositor Education and Awareness Fund within the prescribed time.

The bank must absorb the monetary penalty and continue to comply with the Banking Regulation Act and related RBI requirements. The order does not itself impose an operational restriction, but it signals supervisory concern and leaves open the possibility of further action by RBI based on the same or other findings.