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RBI fines Nirmal Urban Co-operative Bank ₹1 lakh for deposit and lending rule breaches

RBI penalised the Nagpur-based lender for flouting exposure limits and offering deposit rates above SBI's

02 Jul 2026

What changed

  • RBI imposed ₹1 lakh penalty on Nirmal Urban Co-operative Bank
  • Bank violated exposure limits under Supervisory Action Framework
  • Bank offered deposit rates higher than State Bank of India's

The read

RBI slapped a ₹1 lakh penalty on Nirmal Urban Co-operative Bank for two distinct transgressions: it failed to cut single-borrower exposure by 50% under the Supervisory Action Framework, and it offered deposit rates exceeding those of State Bank of India. The statutory inspection as of March 31, 2025, caught the lapses. The fine, imposed on June 30, 2026, is a compliance signal that cooperative banks must adhere to exposure norms and not undercut state-owned lenders on deposit pricing. Verdict: a modest penalty but a clear warning on discipline.

Key numbers

  • monetary penalty: ₹1 lakh
  • order date: June 30, 2026
  • reference financial position: March 31, 2025

Primary source: rbi.org.in