The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on Rajapur Urban Co-operative Bank Ltd., Rajapur, Maharashtra, for non-compliance with RBI directions on loans and advances to directors, their relatives and firms or concerns in which they are interested.

The penalty was imposed through an order dated January 23, 2026, under the powers conferred on RBI by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

RBI said a statutory inspection of the bank was conducted with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance, the bank was issued a show-cause notice on why a penalty should not be imposed. After considering the bank’s reply and additional submissions, RBI found that the bank had sanctioned a loan to the relative of one of its directors, violating regulatory norms.

The central bank clarified that the action is based on deficiencies in regulatory compliance and does not comment on the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by RBI.