What changed

The Reserve Bank of India (RBI) has fined Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd. ₹30,000 for violating directions related to loans to directors and for failing to provide requested information during a statutory inspection. The order, dated March 11, 2026, stems from deficiencies identified during an inspection of the bank's financial position as of March 31, 2025.

This action highlights the importance of adhering to RBI's directives on director loans and ensuring full cooperation with supervisory inspections. Banks must ensure robust internal controls to prevent such violations, as non-compliance can lead to monetary penalties and potentially further regulatory action. The RBI's action is based on regulatory and statutory compliance failures and does not affect the validity of the bank's customer transactions.

What to do next

Review internal policies regarding loans to directors and ensure compliance with RBI directions.
Ensure all information requested by RBI inspectors during statutory audits is promptly and accurately furnished.
Verify adherence to Section 20(1) and Section 35(2) of the Banking Regulation Act, 1949.

Penalties

₹30,000

Source document (simplified)

Press Releases

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| Date : Mar 23, 2026 | |
| RBI imposes monetary penalty on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra | |
| | The Reserve Bank of India (RBI) has, by an order dated March 11, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand only) on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’ and contravention of the provisions of Section 20(1) and Section 35(2) read with Section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(a) and 47A(1)(c) read with Sections 46(2) and 46(4)(i) respectively, read with Section 56 of the BR Act.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and contravention of statutory provisions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions / statutory provisions. After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

1. sanctioned loans to two of its directors; and
2. not furnished the requisite information sought by the inspecting officer of RBI during the inspection.

This action is based on deficiencies in regulatory and statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2025-2026/2308 | | The Reserve Bank of India (RBI) has, by an order dated March 11, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand only) on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’ and contravention of the provisions of Section 20(1) and Section 35(2) read with Section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(a) and 47A(1)(c) read with Sections 46(2) and 46(4)(i) respectively, read with Section 56 of the BR Act.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and contravention of statutory provisions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions / statutory provisions. After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

sanctioned loans to two of its directors; and
not furnished the requisite information sought by the inspecting officer of RBI during the inspection. This action is based on deficiencies in regulatory and statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2025-2026/2308 |
| The Reserve Bank of India (RBI) has, by an order dated March 11, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand only) on Loknete R.D. Appa, Kshirsagar Sahakari Bank Ltd., Niphad, Maharashtra (the bank), for non-compliance with certain directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms / concerns in which they are interested’ and contravention of the provisions of Section 20(1) and Section 35(2) read with Section 56 of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(a) and 47A(1)(c) read with Sections 46(2) and 46(4)(i) respectively, read with Section 56 of the BR Act.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and contravention of statutory provisions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions / statutory provisions. After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:

The bank had:

sanctioned loans to two of its directors; and
not furnished the requisite information sought by the inspecting officer of RBI during the inspection. This action is based on deficiencies in regulatory and statutory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

(Brij Raj)
Chief General Manager

Press Release: 2025-2026/2308 | |