The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.10 lakh on The Nasik Road Deolali Vyapari Sahakari Bank Ltd. for violating RBI guidelines related to loans and advances granted to directors, their relatives, and entities in which they have an interest.

The penalty was imposed following an RBI inspection conducted with reference to the bank’s financial position as of March 31, 2025. Based on supervisory findings, the regulator issued a show-cause notice to the bank for non-compliance with the prescribed directions.

After reviewing the bank’s response and oral submissions made during the personal hearing, RBI found that the bank had sanctioned loans to relatives of its directors, which was in violation of the applicable regulatory norms.

The central bank clarified that the penalty is based on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers. RBI further noted that the action is without prejudice to any additional regulatory measures that may be initiated