The Reserve Bank of India (RBI) has imposed a Rs 10 lakh monetary penalty on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra, for violating provisions of the Banking Regulation Act, 1949.

The penalty follows an RBI statutory inspection conducted with reference to the bank's financial position as of March 31, 2025. During the inspection, the central bank found that the bank had sanctioned a loan to one of its directors, in contravention of Section 20(1) of the Banking Regulation Act.

RBI stated that the penalty has been imposed due to deficiencies in regulatory compliance and clarified that the action does not affect the validity of any transactions or agreements entered into by the bank with its customers. The central bank also noted that the penalty is without prejudice to any further regulatory action that may be initiated against the bank.