The Reserve Bank of India (RBI), through an order dated January 20, 2026, has imposed a monetary penalty of Rs 8 lakh on Shri Kanyaka Nagari Sahakari Bank Ltd., Chandrapur, Maharashtra, for non-compliance with RBI directions relating to Advances to Builders/Contractors. The penalty has been levied under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The action follows a statutory inspection conducted with reference to the bank’s financial position as on March 31, 2025. Based on supervisory findings and subsequent correspondence, RBI issued a show-cause notice to the bank. After examining the bank’s response and additional submissions, the regulator concluded that the bank had sanctioned loans to builders and contractors that were partly utilised for acquisition of land, in violation of the applicable norms.

RBI clarified that the penalty is imposed due to deficiencies in regulatory compliance and does not comment on the validity of any transactions or agreements entered into by the bank with its customers. The imposition of the monetary penalty is without prejudice to any other regulatory action that RBI may initiate against the bank.