Monetary Penalty on Ashok Sahakari Bank Ltd. · 2026-2027/655
RBI press-release 2026-2027/655 · 13 Jul 2026
Official title
RBI imposes monetary penalty on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra
Summary
Check the official recordWhat changed
The Reserve Bank of India imposes a monetary penalty of 10 lakh rupees on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra. The bank failed to comply with Section 20(1) of the Banking Regulation Act, 1949. The bank sanctioned a loan to one of its directors. The Reserve Bank of India conducted a statutory inspection of the bank with reference to its financial position on March 31, 2025. The bank received a notice to show cause for the non-compliance. The Reserve Bank of India reviewed the reply from the bank and sustained the charge. This penalty is without prejudice to any other action the Reserve Bank of India initiates against the bank.
What you must do
- The bank must pay a monetary penalty of 10 lakh rupees.
Key dates
- Date of the order imposing the penalty
- 29 Jun 2026
Who is affected
Document text
July 13, 2026
RBI imposes monetary penalty on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra
The Reserve Bank of India (RBI) has, by an order dated June 29, 2026, imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only) on Ashok Sahakari Bank Ltd., Ahmednagar, Maharashtra (the bank) for non-compliance with provisions of Section 20(1) of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non- compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of this monetary penalty:
The bank had sanctioned loan to one of its directors.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2026-2027/655 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 13 Jul 2026
- Document number
- 2026-2027/655
- Issuing division
- Department of Communication
- Coverage area
- banking