RBI · Enforcement
RBI fines Manmad Urban Co-operative Bank ₹1 lakh for director-related loan
The penalty follows non-compliance with rules on loans to directors and their relatives.
What changed
- RBI imposed a monetary penalty of ₹1 lakh on Manmad Urban Co-operative Bank
- The bank had sanctioned loans to a relative of its director
- Penalty was based on deficiencies in regulatory compliance
The read
RBI fined Manmad Urban Co-operative Bank ₹1 lakh for lending to a director’s relative, violating norms on loans to insiders. The action, based on a March 2025 inspection, reflects RBI’s enforcement of related-party lending rules. The penalty is not a judgment on the loan’s validity but a warning: co-operative banks must follow director-loan rules strictly.
Key numbers
- Penalty: ₹1 lakh
- Order date: July 17, 2026
- Inspection reference: March 31, 2025
Primary source: rbi.org.in