Document title: RBI imposes monetary penalty on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/655
Date: 13 July 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated 29 June 2026, imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only) on Ashok Sahakari Bank Ltd. for non‑compliance with the provisions of Section 20(1) of the Banking Regulation Act, 1949. The penalty was exercised under the powers conferred by Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the same Act.
A statutory inspection of the bank was conducted by the RBI with reference to its financial position as on 31 March 2025. Following supervisory findings of non‑compliance with RBI directions and related correspondence, a notice was issued to the bank requiring it to show cause why the penalty should not be imposed. After considering the bank’s reply, the RBI found that the bank had sanctioned a loan to one of its directors, a breach that sustained the charge and warranted the monetary penalty.
The RBI clarified that this action is based solely on deficiencies in regulatory compliance and does not pronounce on the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is without prejudice to any other action that may be initiated by the RBI against the bank.
In conclusion, the RBI has exercised its regulatory authority to penalise Ashok Sahakari Bank for a specific breach of the Banking Regulation Act, underscoring its commitment to enforce compliance among banking institutions.