RBI Imposes Monetary Penalty on Maharashtra Cooperative Bank for Violating Exposure Norms
The Reserve Bank of India (RBI) has imposed a monetary penalty totaling ₹20,000/- on Wardha District Ashirwad Mahila Nagari Sahakari Bank Maryadit, located in Hinganghat, Maharashtra. This disciplinary action follows a review conducted by the central bank regarding regulatory compliance standards for Unions and Cooperative Banks (UCBs).The penalty was formalized by the RBI via an order dated June 15, 2026. It addresses specific non-compliance issues related to 'Exposure Norms & Statutory/ Other Restrictions' set forth by the regulator.
Details of Regulatory Breach and Penalization
The imposition of the fine is carried out in exercise of powers granted under the Banking Regulation Act, 1949 (Section 47A(1)(c) read with Sections 46(4)(i) and 56). This action stems from findings identified during a statutory inspection conducted by the RBI.The review focused on the bank’s financial position as recorded up to March 31, 2025. Following supervisory observations of regulatory noncompliance, the RBI issued notice advising the bank to justify why it should not be penalized.
Failure to Adhere to Advance Ceilings Cited in Penalty Order
After carefully considering the bank's response, supplementary submissions, and oral hearings, the RBI sustained a specific charge against the institution. The primary lapse identified was the failure by the bank to adhere to the prescribed regulatory ceiling on certain advances.This penalty action is designated as being based purely on deficiencies in regulatory compliance. The RBI clarified that the monetary fine does not prejudice or call into question the validity of any transaction or agreement made between the bank and its customers.
The central bank also noted that this particular imposition remains without affecting the possibility of initiating other actions against the bank if necessary, pending further review.
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