RBI imposes monetary penalty on The Pusad Urban Cooperative Bank Limited, Pusad, Maharashtra

Case Brief

RBI imposed a monetary penalty of Rs 7.50 lakh on The Pusad Urban Cooperative Bank Limited, Pusad, Maharashtra, by order dated May 02, 2025. The penalty followed supervisory findings from an inspection with reference to the bank's financial position as on March 31, 2024. RBI said the bank had regularised NPAs without repayment through genuine sources, opened certain savings deposit accounts in the name of ineligible entities, and offered higher interest rates on deposits than those of SBI, in breach of RBI directions on income recognition, asset classification, provisioning, deposit interest rates, and specific Supervisory Action Framework directions. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.