RBI Imposes ₹50,000 Penalty on Rajapur Urban Cooperative Bank
Moneylife Digital Team 30 January 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹50,000 on Maharashtra-based Rajapur Urban Cooperative Bank Ltd for non-compliance with directions relating to loans and advances granted to directors, their relatives and firms or concerns in which they have an interest.
 
The statutory inspection of Rajapur Urban Cooperative Bank revealed that the lender had sanctioned a loan to the relative of one of its directors.
 
After considering the lender’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against Rajapur Urban Cooperative Bank are sustained, warranting the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Rajapur Urban Cooperative Bank is based on regulatory compliance deficiencies and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
 
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