Monetary Penalty on Nirmal Urban Co-operative Bank Ltd. · 2026-2027/597
RBI press-release 2026-2027/597 · 02 Jul 2026
Official title
RBI imposes monetary penalty on Nirmal Urban Co-operative Bank Ltd., Nagpur, Maharashtra
RBI press-release 2026-2027/597 · 02 Jul 2026
Official title
RBI imposes monetary penalty on Nirmal Urban Co-operative Bank Ltd., Nagpur, Maharashtra
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹1 lakh on Nirmal Urban Co-operative Bank Ltd., Nagpur. The bank failed to comply with regulatory directions regarding exposure limits for single borrowers and operational instructions under the Supervisory Action Framework. Specifically, the bank did not reduce single borrower exposure limits for fresh loans by 50 percent as required. Additionally, the bank offered interest rates on certain deposits that exceeded rates offered by the State Bank of India. The Reserve Bank of India issued this penalty under the Banking Regulation Act, 1949, following a statutory inspection of the bank's financial position as of March 31, 2025.
Key dates
Who is affected
Thresholds
If you do not comply
July 02, 2026
RBI imposes monetary penalty on Nirmal Urban Co-operative Bank Ltd., Nagpur, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated June 30, 2026, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Nirmal Urban Co-operative Bank Ltd., Nagpur, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Limits on exposure to single and group borrowers/parties and large exposures and Revision in the target for priority sector lending – UCBs’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’. 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, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
In non-adherence to the directions under Supervisory Action Framework (SAF), the bank had: i. not reduced, single borrower exposure limit for fresh loans and advances by 50% of the applicable regulatory limit, in certain cases; and ii. offered interest rates on certain deposits, higher than those offered by the State Bank of India.
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: 2026-2027/597 Chief General Manager प्रेस प्रकाशनी PRESS RELEASE
भारतीय ǐरज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार ͪ वभाग, केंद्रȣय कायार्लय, शहȣद भगत ͧ संह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502