**Executive Summary**
RBI imposed a monetary penalty of ₹1 lakh on Parner Taluka Sainik Sahakari Bank Ltd., Parner, Maharashtra, due to non-compliance with RBI directions on Income Recognition, Asset Classification, Provisioning, and Other Related Matters - UCBs. The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The order was issued on October 23, 2025.
**Key Points / Main Content**
* **Penalty:**
* RBI imposed a monetary penalty of ₹1 lakh on Parner Taluka Sainik Sahakari Bank Ltd.
* The penalty is for non-compliance with RBI directions on 'Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs'.
* **Basis of Penalty:**
* The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2024.
* The penalty was imposed following a notice to the bank regarding non-compliance.
* RBI found that the bank had regularised certain non-performing assets (NPAs) without repayment through genuine sources.
* **Legal Basis:**
* The penalty was imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Clarifications:**
* The action is based on deficiencies in regulatory compliance.
* The penalty does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Parner Taluka Sainik Sahakari Bank Ltd.**
* **Impact**
* The bank is subject to a monetary penalty of ₹1 lakh.
* The bank has a record of non-compliance with RBI directions.
* **Action Required**
* The bank must pay the monetary penalty of ₹1 lakh.
* The bank must ensure compliance with RBI directions to avoid further penalties.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Parner Taluka Sainik Sahakari Bank Ltd.: The bank on which monetary penalty has been imposed.
Banking Regulation Act, 1949: The law under which RBI derives its powers.
Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs: RBI directions for non-compliance of which the penalty was imposed.
Maharashtra: The state where Parner Taluka Sainik Sahakari Bank Ltd. is located.
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RESERVE BANK OF INDIA
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ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
October 30, 2025
RBI imposes monetary penalty on Parner Taluka Sainik Sahakari Bank Ltd.,
Parner, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated October 23, 2025,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Parner Taluka
Sainik Sahakari Bank Ltd., Parner, Maharashtra (the bank), for non-compliance with
certain directions issued by RBI on ‘Income Recognition, Asset Classification,
Provisioning and Other Related Matters - UCBs’. This penalty has been imposed in
exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read
with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to
its financial position as on March 31, 2024. Based on supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the bank advising it to show cause as to why penalty should not be
imposed on it for its failure to comply with the said directions. After considering the
bank's reply to the notice, additional submissions made by it and oral submissions
made during the personal hearing, RBI found, inter alia, that the following charge
against the bank was sustained, warranting imposition of monetary penalty:
The bank had regularised certain non-performing assets (NPAs) without
repayment through genuine sources.
This action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered into by the
bank with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/1419 Chief General Manager