The Reserve Bank of India has imposed a monetary penalty of Rs 2 lakh on Pandharpur Urban Co-operative Bank Ltd. for non-compliance with regulatory directions related to asset classification and treatment of non-performing assets (NPAs).

The penalty, levied through an order dated April 29, 2026, follows the RBI’s statutory inspection of the bank based on its financial position as of March 31, 2025.

The central bank found that the lender had sanctioned additional credit facilities to certain borrowers for the repayment of their existing non-performing loans, in violation of prescribed norms.

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