**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal, Madhya Pradesh, due to non-compliance with directions on 'Prudential Exposure Limits'. The penalty was issued via order dated January 20, 2026, and is based on a statutory inspection as of March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹1 lakh on Sri Satya Sai Nagrik Sahakari Bank Maryadit.
* The order was dated January 20, 2026.
* **Reason for Penalty:**
* Non-compliance with RBI directions on 'Prudential Exposure Limits'.
* Breach of prudential inter-bank gross exposure limits and counterparty exposure limits.
* **Legal Basis:**
* Penalty imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Inspection & Notice:**
* RBI conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025.
* A notice was issued to the bank to show cause as to why the penalty should not be imposed.
* **Clarification:**
* The action is based on deficiencies in regulatory compliance.
* It is not intended to 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**
**Sri Satya Sai Nagrik Sahakari Bank Maryadit**
* **Impact:** Subject to a monetary penalty of ₹1 lakh due to non-compliance with RBI directives on Prudential Exposure Limits, potential reputational damage.
* **Action Required:** The bank must pay the penalty and rectify the deficiencies that led to the non-compliance to avoid further action by RBI.
**Customers of Sri Satya Sai Nagrik Sahakari Bank Maryadit**
* **Impact:** The document states that the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* **Action Required:** No direct action required. However, they may wish to stay informed about the bank's compliance status.
**Reserve Bank of India (RBI)**
* **Impact:** Enforcement of regulatory compliance and maintenance of financial stability.
* **Action Required:** Monitor the bank's compliance with the required corrective actions.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty and conducted statutory inspection.
Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal, Madhya Pradesh: Bank on which monetary penalty was imposed.
Banking Regulation Act, 1949: Act under which penalties are being imposed.
Section 47A(1)(c): Section that governs the penalties being imposed.
Prudential Exposure Limits: RBI directions on Prudential Exposure Limits for non-compliance of which penalty was imposed.
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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
January 22, 2026
RBI imposes monetary penalty on Sri Satya Sai Nagrik Sahakari Bank Maryadit,
Bhopal, Madhya Pradesh
The Reserve Bank of India (RBl) has, by an order dated January 20, 2026,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Sri Satya Sai
Nagrik Sahakari Bank Maryadit, Bhopal, Madhya Pradesh (the bank), for non-
compliance with certain directions issued by RBI on ‘Prudential Exposure Limits’.
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, 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 breached the prudential inter-bank gross exposure limits and
counterparty exposure limits.
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: 2025-2026/1973 Chief General Manager