**Executive Summary**
This press release, dated January 22, 2026, announces the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹8 lakh on Shri Kanyaka Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra, due to non-compliance with RBI directions on ‘Advances to Builders/Contractors.' This penalty was imposed following a statutory inspection as of March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹8 lakh on Shri Kanyaka Nagari Sahakari Bank Ltd. on January 20, 2026.
* The penalty is for non-compliance with RBI directions on ‘Advances to Builders/Contractors.'
* RBI exercised its powers under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Basis for Penalty:**
* The statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2025.
* The bank was issued a notice to show cause as to why penalty should not be imposed.
* The penalty was warranted because the bank sanctioned loans to builders/contractors which were partly utilized for acquisition of land.
**Impact Analysis**
**Shri Kanyaka Nagari Sahakari Bank Ltd.**
* **Impact:** The bank faces a financial penalty of ₹8 lakh and must address the identified regulatory compliance deficiencies.
* **Action Required:** The bank must pay the penalty and take corrective action to comply with RBI directions to avoid further regulatory action.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty for non-compliance with directions on 'Advances to Builders/Contractors'.
Banking Regulation Act, 1949: The act under which the penalty was imposed, specifically citing sections 47A(1)(c), 46(4)(i), and 56.
Shri Kanyaka Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra: The bank on which monetary penalty was imposed for non-compliance.
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