**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.25 lakh on The Yavatmal Urban Co-operative Bank Ltd., Yavatmal, Maharashtra, for non-compliance with RBI directions on risk management, wilful defaulters, and credit information reporting. The penalty was imposed on December 4, 2025, following a statutory inspection with reference to the bank's financial position on March 31, 2025.
**Key Points / Main Content**
* **Monetary Penalty:**
* A penalty of ₹2.25 lakh has been imposed on The Yavatmal Urban Co-operative Bank Ltd.
* **Reason for Penalty:**
* Non-compliance with RBI directions on:
* Concentration Risk Management
* Treatment of Wilful Defaulters and Large Defaulters
* Credit Information Reporting
* **RBI Findings:**
* The bank sanctioned loans exceeding the prescribed regulatory limit to certain nominal members.
* The bank failed to report information on certain borrowers classified as wilful defaulters to Credit Information Companies within the required timeframe.
* **Statutory Basis:**
* The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and Section 25(1)(iii) read with Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
* **Clarification:**
* The action is based on deficiencies in regulatory compliance.
* The action does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
* The imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
* **Inspection Date:**
* The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025.
* **Order Date:**
* The order was dated December 4, 2025.
**Impact Analysis**
**The Yavatmal Urban Co-operative Bank Ltd.**
* **Impact:** Financial loss of ₹2.25 lakh and potential reputational damage.
* **Action Required:** Improve compliance with RBI regulations and address the identified deficiencies.
Key Entities Referenced
Reserve Bank of India (RBI): The entity imposing the monetary penalty and issuing the directions.
Banking Regulation Act, 1949: The law under which the monetary penalty is imposed.
The Yavatmal Urban Co-operative Bank Ltd., Yavatmal, Maharashtra: The bank on which the monetary penalty is imposed.
Credit Information Companies (Regulation) Act, 2005: The act related to reporting information on borrowers to credit information companies.
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
December 08, 2025
RBI imposes monetary penalty on The Yavatmal Urban Co-operative Bank Ltd.,
Yavatmal, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated December 4, 2025,
imposed a monetary penalty of ₹2.25 lakh (Rupees Two Lakh Twenty Five Thousand
only) on The Yavatmal Urban Co-operative Bank Ltd., Yavatmal, Maharashtra (the
bank), for non-compliance with certain directions issued by RBI on ‘Concentration
Risk Management’, ‘Treatment of Wilful Defaulters and Large Defaulters’ and ‘Credit
Information Reporting’. 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, and Section 25(1)(iii) read with
Section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
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 charges
against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
i. sanctioned loans in excess of the prescribed regulatory limit to certain nominal
members; and
ii. failed to report information on certain borrowers classified as wilful defaulters
to Credit Information Companies within the prescribed regulatory timeline.
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: 2025-2026/1660 Chief General Manager