RBI imposes monetary penalty on Nagar Sahkari Bank Ltd., Maharajganj (U.P.)

Case Brief

RBI imposed a monetary penalty on Nagar Sahkari Bank Ltd., Maharajganj (Uttar Pradesh) by order dated May 26, 2026. The penalty was imposed after a statutory inspection found non-compliance with RBI directions relating to income recognition, asset classification and provisioning, exposure norms and statutory restrictions, membership of credit information companies, and management of advances. RBI said the sustained charges included failure to classify certain credit facilities as NPAs, incorrect classification of certain NPAs, failure to identify NPAs on an ongoing basis, breach of prescribed ceilings on unsecured advances at both individual and aggregate levels, non-uploading of borrower credit information to CICs, and deficiencies in certain credit sanctions. The penalty was levied under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.