RBI imposed a monetary penalty of ₹3 lakh on Nagar Sahakari Bank Limited for non‑compliance with regulatory directions issued.
The bank sanctioned director‑related loans, mis‑classified borrower facilities as non‑performing assets, exceeded single‑borrower exposure limits, and omitted KYC uploads.
RBI’s inspection covered the bank’s financial position as of 31 March 2025 and followed a show‑cause notice before imposing the fine.
The penalty highlights RBI’s strict enforcement, signaling heightened scrutiny for cooperative banks and potential market confidence effects in the sector.