The Reserve Bank of India (RBI) has, by an order dated March 11, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand only) on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’ and contravention of the provisions of Section 20(1) and Section 35(2) read with Section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(a) and 47A(1)(c) read with Sections 46(2) and 46(4)(i) respectively, read with Section 56 of the BR Act. 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 contravention of statutory provisions 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 / statutory provisions. After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty: The bank had: -
sanctioned loans to two of its directors; and -
not furnished the requisite information sought by the inspecting officer of RBI during the inspection. This action is based on deficiencies in regulatory and statutory 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)
Chief General Manager Press Release: 2025-2026/2308 |
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