RBI imposes monetary penalty on Nandani Sahakari Bank Ltd., Kolhapur, Maharashtra

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.00 lakh on Nandani Sahakari Bank Ltd., Kolhapur, through an order dated June 07, 2024. This penalty was levied due to the bank's failure to comply with RBI directives on ‘Gold Loan – Bullet Repayment – UCBs’ and ‘Management of Advances – UCBs’. \r

The penalty was imposed under RBI's powers conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection as of March 31, 2023. RBI's decision was based on findings of non-compliance with regulatory directions, specifically relating to sanctioning gold loans beyond prescribed limits under the bullet repayment scheme. \r

The penalty does not question the validity of the bank's transactions and does not preclude further actions by RBI.