RBI Penalises Nagar Sahkari Bank ₹14.25 Lakh

Relevant Extracted Data –

• RBI imposed a monetary penalty of ₹14.25 lakh on Nagar Sahkari Bank Ltd., Maharajganj for non‑compliance with RBI directions on income recognition, asset classification, provisioning, exposure norms, CIC membership, and advance management.
• The statutory inspection considered the bank’s financial position as of 31 March 2025; the bank failed to classify certain credit facilities as NPAs, breached unsecured advance ceilings, did not upload borrower credit information to Credit Information Companies, and lacked adequate safeguards on credit sanctions.
• RBI issued a show‑cause notice, considered the bank’s reply and oral submissions during a personal hearing before imposing the penalty under Section 47A(1)(c) of the Banking Regulation Act, 1949 and related provisions of the Credit Information Companies (Regulation) Act, 2005.
• The penalty is imposed without prejudice to any further action RBI may take and does not comment on the validity of any transactions between the bank and its customers.

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