The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 30,000 on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra, for non-compliance with regulatory directions and violation of provisions under the Banking Regulation Act, 1949.

The penalty, imposed through an order dated March 11, 2026, follows supervisory findings during the bank’s statutory inspection conducted with reference to its financial position as on March 31, 2025.

The RBI found that the bank had sanctioned loans to two of its directors, in violation of norms governing loans and advances to directors and related parties. Additionally, the bank failed to furnish required information sought by RBI officials during the inspection.

After issuing a show-cause notice and reviewing the bank’s response along with additional submissions, the central bank concluded that the charges were sustained, warranting the penalty.

The RBI clarified that the action is based on deficiencies in regulatory and statutory compliance and does not affect the validity of transactions carried out by the bank with its customers. It also stated that the penalty is without prejudice to any further action that may be initiated.