The Reserve Bank of India has imposed a monetary penalty of Rs 1 lakh on The Nandura Urban Co-operative Bank Ltd., Nandura, Maharashtra, for violating RBI’s directions on “Exposure Norms and Statutory / Other Restrictions – UCBs.”

The penalty follows a statutory inspection conducted with reference to the bank’s financial position as of March 31, 2025. RBI found that the bank had sanctioned loans beyond the prescribed regulatory limits to certain nominal members.

RBI clarified that this penalty is based solely on regulatory compliance deficiencies and does not question the validity of any customer transactions. The central bank also noted that the action is without prejudice to any further regulatory measures it may take against the bank.