**Executive Summary**
This press release, dated January 19, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra. The penalty, ordered on January 13, 2026, is for non-compliance with RBI directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs'. The statutory inspection was conducted by the RBI with reference to its financial position as on March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹1 lakh on The Nandura Urban Co-operative Bank Ltd.
* The penalty is for non-compliance with RBI directions on 'Exposure Norms and Statutory / Other Restrictions – UCBs'.
* The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Statutory Inspection:**
* RBI conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2025.
* The penalty was issued after supervisory findings of non-compliance, a notice to show cause, and consideration of the bank's response and submissions.
* **Violation:**
* The bank sanctioned loans in excess of the prescribed regulatory limit to certain nominal members.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* The action is not intended to pronounce upon 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**
**The Nandura Urban Co-operative Bank Ltd.**
* **Impact:**
* The bank faces a monetary penalty of ₹1 lakh.
* The bank's reputation and future operations may be affected.
* RBI could initiate further actions against the bank.
* **Action Required:**
* The bank must pay the monetary penalty.
* The bank must address the non-compliance issues related to exposure norms and statutory restrictions.
* The bank must implement corrective measures to prevent future violations.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed the monetary penalty and conducted inspection of The Nandura Urban Co-operative Bank Ltd.
The Banking Regulation Act, 1949: Act under which powers were exercised to impose the penalty.
Section 47A(1)(c): Section of an act that confers powers on RBI to impose penalties.
The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra: Urban Co-operative Bank on which monetary penalty was imposed
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 19, 2025
RBI imposes monetary penalty on The Nandura Urban Co-operative Bank Ltd.,
Nandura, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated January 13, 2026,
imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on The Nandura
Urban Co-operative Bank Ltd., Nandura, Maharashtra (the bank), for non-compliance
with certain directions issued by RBI on ‘Exposure Norms and Statutory / Other
Restrictions – 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.
2. 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:
3. The bank had sanctioned loans in excess of the prescribed regulatory limit to certain
nominal members.
4. 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: 2025-2026/1946 Chief General Manager