**Executive Summary**
This press release from the Reserve Bank of India (RBI), dated January 22, 2026, announces a monetary penalty of ₹8 lakh imposed on Shri Kanyaka Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra, due to non-compliance with RBI directions on ‘Advances to Builders/Contractors’. The penalty was ordered on January 20, 2026, following a statutory inspection with reference to the bank's financial position as of March 31, 2025. The penalty is imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a penalty of ₹8 lakh on Shri Kanyaka Nagari Sahakari Bank Ltd.
* The penalty was imposed via order dated January 20, 2026.
* **Reason for Penalty:**
* Non-compliance with certain RBI directions on ‘Advances to Builders/Contractors’.
* The bank sanctioned loans to builders/contractors partly utilized for land acquisition.
* **Authority and Basis:**
* Penalty imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* Based on the statutory inspection of the bank conducted by the RBI with reference to its financial position as of March 31, 2025.
* RBI issued a notice to the bank, and after considering the bank's reply, the charge was sustained.
* **Clarification:**
* The action is based on deficiencies in regulatory compliance.
* The penalty does not pronounce the validity of any transaction or agreement entered into by the bank with its customers.
* The monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Shri Kanyaka Nagari Sahakari Bank Ltd.**
* **Impact:**
* Financial penalty of ₹8 lakh.
* Potential reputational damage.
* Increased scrutiny from RBI in the future.
* **Action Required:**
* Pay the imposed penalty.
* Review and rectify the areas of non-compliance regarding ‘Advances to Builders/Contractors’.
* Implement measures to ensure future compliance with RBI directions.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed monetary penalty and conducted the statutory inspection.
Banking Regulation Act, 1949: Sections 47A(1)(c), 46(4)(i) and 56 are referenced to impose the monetary penalty.
Shri Kanyaka Nagari Sahakari Bank Ltd.: Bank on which the monetary penalty was imposed due to non-compliance.
Chandrapur, Maharashtra: Location of Shri Kanyaka Nagari Sahakari Bank Ltd.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 22, 2026
RBI imposes monetary penalty on Shri Kanyaka Nagari Sahakari Bank Ltd.,
Chandrapur, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated January 20, 2026,
imposed a monetary penalty of ₹8 lakh (Rupees Eight Lakh only) on Shri Kanyaka
Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra (the bank), for non-compliance
with certain directions issued by RBI on ‘Advances to Builders/Contractors’. 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, 2025. 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 and additional submissions made by it, RBI found, inter
alia, that the following charge against the bank was sustained, warranting imposition
of monetary penalty:
The bank had sanctioned loans to builders / contractors, which were partly utilized
for acquisition of land.
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: 2025-2026/1972 Chief General Manager