The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on Parner Taluka Sainik Sahakari Bank Ltd., Parner, Maharashtra, for non-compliance with RBI directions on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.

The penalty, issued through an order dated October 23, 2025, has been levied under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

RBI conducted a statutory inspection of the bank based on its financial position as of March 31, 2024. Following supervisory findings indicating non-compliance with regulatory norms, a notice was issued to the bank asking it to explain why a penalty should not be imposed. After reviewing the bank’s written and oral submissions, RBI determined that the bank had regularised certain non-performing assets (NPAs) without repayment from genuine sources, confirming the violation.

RBI clarified that the action is based solely on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements between the bank and its customers. The imposition of this penalty is without prejudice to any other regulatory action that RBI may initiate against the bank.