RBI Imposes 50k Penalty on Walchandnagar Sahakari Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹50,000 on Walchandnagar Sahakari Bank Ltd., located in Walchandnagar, Maharashtra. The penalty was imposed vide an order dated March 11, 2026. 

The action was taken under the powers conferred on RBI under Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. According to RBI, the penalty relates to non-compliance with certain directions issued by the central bank concerning Know Your Customer (KYC) requirements. 

Inspection and Regulatory Proceedings 

The penalty has been imposed upon Walchandnagar Sahakari Bank after a statutory inspection carried out by RBI with reference to the bank’s financial position as of March 31, 2025. 

Based on supervisory findings indicating non-compliance with RBI directions, the central bank issued a notice to the bank asking it to explain why a penalty should not be imposed. The bank submitted its reply and also made oral submissions during a personal hearing. After reviewing the bank’s response, RBI determined that the charge against the bank was sustained. 

Key Compliance Lapse Identified 

RBI stated that the bank had failed to establish a system for the periodic review of risk categorisation of accounts. According to RBI’s regulatory requirements, such reviews should take place at least once every six months.