India, July 3 -- The Reserve Bank of India (RBI) has imposed a Rs 1 lakh monetary penalty on Nirmal Urban Co-operative Bank Ltd., Nagpur, for non-compliance with regulatory directions related to borrower exposure limits, priority sector lending, and the Supervisory Action Framework (SAF).
The action follows an RBI inspection based on the bank's financial position as of March 31, 2025. The central bank found that the lender failed to reduce its single borrower exposure limit for certain fresh loans as required under the SAF and offered interest rates on some deposits that were higher than those offered by the State Bank of India.
RBI clarified that the penalty pertains solely to regulatory compliance deficiencies and does not affect the va...