Date of Issue: January 05, 2026 Subject: Harmonized Framework for Lending to Related Parties & Financial Statement Disclosures. Overview: The Reserve Bank of India has issued 16 distinct Amendment Directions to rationalize and harmonize the norms for “Lending to Related Parties” across all Regulated Entities (REs). These amendments introduce a principle-based framework, stricter governance on […]
1. Jila Sahakari Bank Limited, Mau Penalty Amount: ₹2.00 Lakh Order Date: December 31, 2025 Regulation Violated: RBI Directions on ‘Know Your Customer (KYC)’ Specific Charge: Failure to review risk categorization of accounts (every 6 months) and failure to carry out periodic KYC updation. Root Cause Analysis (RCA) The primary failure was operational lapse in
Bank Entity: The Industrial Co-operative Bank Ltd., Guwahati Date of Report: January 02, 2026 Reference: RBI Press Release: 2025-2026/1835 Action Summary: The Reserve Bank of India (RBI) has extended the period of Directions imposed on the bank by a further 3 months, citing “public interest.” The bank continues to operate under restricted conditions, including caps
Date of Issue: January 01, 2026 Reference: Press Release 2025-2026/1824 Effective Date: Immediate / April 01, 2026 (for full implementation) Executive Summary The Reserve Bank of India has issued two Amendment Directions to align the regulatory capital framework for NBFCs with the actual risk profile of operational infrastructure projects. The amendments introduce a granular risk-weighting
Date: December 31, 2025Subject: Extension of Directions under Section 35A of the Banking Regulation Act, 1949 1. The Bhavani Sahakari Bank Ltd., Mumbai 1.1 Key Details of Action The Reserve Bank of India (RBI) has extended the operational directions previously imposed on The Bhavani Sahakari Bank Ltd. This action effectively freezes standard banking operations to
1. Kolhapur District Central Co-operative Bank Ltd., Maharashtra Key Details Penalty Amount ₹2.10 Lakh Order Date December 22, 2025 Violation Category Contravention of Section 20 read with Section 56 of BR Act, 1949. Specific Charge Sanctioning a loan to a company in which one of the bank’s Directors stood as a guarantor. Root Cause Analysis
1. Key Details of RBI Action Entity Name Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka) Regulatory Provision Section 35A read with Section 56 of the Banking Regulation Act, 1949 Original Directive Date September 26, 2024 Latest Action (Extension) Extension of Directive for 3 months (Dec 23, 2025 Press Release) Current Validity December 27,
RBI Penalty Report – Kotak Mahindra Bank 1. Executive Summary The Reserve Bank of India (RBI) has imposed a monetary penalty on Kotak Mahindra Bank Limited following the Statutory Inspection for Supervisory Evaluation (ISE 2024). The penalty addresses deficiencies in regulatory compliance regarding Basic Savings Bank Deposit (BSBD) accounts, the scope of Business Correspondents (BCs),
This report details the restrictions imposed by the Reserve Bank of India (RBI) under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The analysis covers the specific directives, underlying causes, and strategic takeaways for two cooperative banks. 1. The Valsad Mahila Nagrik Sahakari Bank Ltd. Strict Restrictions Location: Valsad, Gujarat |
1. The Arakonam Co-operative Urban Bank Limited, Tamil Nadu Penalty Amount ₹2.50 Lakh Major Violation Order Date December 15, 2025 Statutory Inspection Reference Date: March 31, 2025 Key Violations Failure to transfer 20% of net profit to Statutory Reserve (FY 2022-23 to 2024-25). Sanctioning loans to nominal members in excess of regulatory limits. Exceeding regulatory
