**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 Lakh on Vita Merchants' Co-operative Bank Ltd., Vita, Maharashtra, for non-compliance with directions on exposure norms, statutory restrictions, and fair lending practices. The penalty, dated February 13, 2026, resulted from a statutory inspection as of March 31, 2025, following a show-cause notice and hearing.
**Key Points / Main Content**
* **Monetary Penalty Imposed:** The Reserve Bank of India (RBI) has imposed a penalty of ₹3.10 Lakh on Vita Merchants' Co-operative Bank Ltd., Vita, Maharashtra.
* **Reason for Penalty:** The penalty is for non-compliance with RBI directions concerning 'Exposure Norms and Statutory / Other Restrictions UCBs' and 'Fair Lending Practice - Penal Charges in Loan Accounts'.
* **Legal Basis:** The penalty has been imposed under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
* **Inspection Basis:** The RBI's action is based on a statutory inspection of the bank's financial position as of March 31, 2025.
* **Specific Violations:** The bank was found to have sanctioned loans to certain nominal members in excess of the prescribed regulatory limit and failed to communicate the levy of penal charges and their reasons to certain borrowers.
* **Nature of Action:** This penalty is based on regulatory compliance deficiencies and does not affect the validity of transactions with customers. It is also without prejudice to any other action RBI may initiate.
**Impact Analysis**
**Vita Merchants' Co-operative Bank Ltd., Vita, Maharashtra**
* **Impact:** The bank has incurred a financial penalty of ₹3.10 Lakh due to violations of RBI directions related to loan sanctions and communication of penal charges.
* **Action Required:** The bank must ensure compliance with RBI's directions on exposure norms, statutory restrictions, and fair lending practices to avoid future penalties.
Key Entities Referenced
Banking Regulation Act, 1949: The primary law under which the penalty was imposed and under which RBI derives its regulatory powers.
Reserve Bank of India (RBI): The regulatory body that imposed the penalty and issued the directions.
Vita Merchants' Co-operative Bank Ltd.: The entity that was penalized for non-compliance.
Vita, Maharashtra: The location of the bank, central to the specific applicability of the action.
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
February 26, 2026
RBI imposes monetary penalty on Vita Merchants’ Co-operative Bank Ltd.,
Vita, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated February 13, 2026,
imposed a monetary penalty of ₹3.10 Lakh (Rupees Three Lakh Ten Thousand only)
on Vita Merchants’ Co-operative Bank Ltd., Vita, Maharashtra (the bank), for non-
compliance with certain directions issued by RBI on ‘Exposure Norms and Statutory /
Other Restrictions – UCBs’ and ‘Fair Lending Practice - Penal Charges in Loan
Accounts’. 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 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 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 to certain nominal members in excess of the prescribed
regulatory limit; and
ii) not communicated the levy of penal charges and the reasons thereof to certain
borrowers.
This action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered by the bank
with its customers. Further, imposition of monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/2173 Chief General Manager