RBI Imposes Penalty on Loknete RD Kshirsagar Sahakari Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹30,000 on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., located in Niphad, Maharashtra. The Press Release dated 23rd March, 2026, cites non-compliance with RBI directions and violations of provisions under the Banking Regulation Act, 1949. 

Basis of the Penalty 

The penalty was imposed under powers granted to RBI by Section 47A(1)(a) and 47A(1)(c), read with Sections 46(2) and 46(4)(i), along with Section 56 of the Act. The violations relate to RBI guidelines on “Loans and advances to directors, their relatives, and firms/concerns in which they are interested,” as well as contravention of Sections 20(1) and 35(2) of the Act. 

Inspection and Findings 

The action follows a statutory inspection conducted by RBI with reference to the bank’s financial position as of 31st March, 2025. Based on supervisory findings and related correspondence, RBI issued a notice to the bank asking it to explain why a penalty should not be imposed. 

After reviewing the bank’s response and additional submissions, RBI determined that certain charges were sustained. 

Key Violations Identified 

• The bank sanctioned loans to two of its directors.
• The bank did not furnish required information sought by RBI’s inspecting officer during the inspection.