**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, for non-compliance with directions on ‘Prudential Exposure Limits.’ The penalty was ordered on January 20, 2026, and announced on January 22, 2026. The action is based on deficiencies in regulatory compliance.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹1 lakh on Sri Satya Sai Nagrik Sahakari Bank Maryadit.
* The penalty is for non-compliance with RBI directions on ‘Prudential Exposure Limits.’
* The penalty is imposed under powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Background:**
* The penalty follows a statutory inspection of the bank's financial position as of March 31, 2025.
* A notice was issued to the bank to show cause as to why the penalty should not be imposed.
* The decision to impose the penalty was made after considering the bank's reply and additional submissions.
* **Reason for Penalty:**
* The bank breached the prudential inter-bank gross exposure limits and counterparty exposure limits.
* **Scope of Action:**
* The action is based on deficiencies in regulatory compliance.
* The action does not invalidate the bank's transactions with its customers.
* The penalty does not prejudice any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal, Madhya Pradesh**
* **Impact:** The bank is subject to a monetary penalty of ₹1 lakh, which may affect its financial standing and reputation.
* **Action Required:** The bank must pay the penalty and take corrective actions to address the identified non-compliance issues.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty and issuing directions.
Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal, Madhya Pradesh: The bank on which the monetary penalty is imposed.
Banking Regulation Act, 1949: The Act under which the penalty is imposed.
Section 47A(1)(c): Section of the Banking Regulation Act used for imposing penalty.
Prudential Exposure Limits: Directions issued by RBI that the bank failed to comply with
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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