India, April 1 -- The Reserve Bank of India has imposed a monetary penalty of Rs 3 lakh on Nagar Sahakari Bank Limited for non-compliance with multiple regulatory directions.
The penalty, ordered on March 23, 2026, was levied for violations related to lending norms, asset classification, exposure limits, and Know Your Customer (KYC) guidelines under the Banking Regulation Act.
The action follows a statutory inspection conducted by the RBI based on the bank's financial position as of March 31, 2025. The central bank found several lapses, including sanctioning loans to directors and related entities, failure to classify certain borrower accounts as non-performing assets (NPAs), breach of single borrower exposure limits, and delays in upload...