The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Manmad Urban Co-operative Bank Ltd., Maharashtra, for violating RBI's directions on loans and advances to directors, their relatives, and related entities.

The penalty follows an RBI statutory inspection based on the bank's financial position as of March 31, 2025. The regulator found that the bank had sanctioned a loan to the relative of one of its directors, resulting in non-compliance with regulatory norms.

RBI clarified that the penalty relates to regulatory compliance deficiencies and does not affect the validity of the bank's transactions with its customers.