The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 7 lakh on Sangli District Central Co-operative Bank Ltd., Maharashtra, for violating provisions of the Banking Regulation Act, 1949.

The penalty follows a statutory inspection conducted by NABARD based on the bank's financial position as of March 31, 2025. RBI found that the bank had sanctioned loans to related directors, contravening the applicable provisions of the Banking Regulation Act.

The central bank clarified that the penalty is based on deficiencies in statutory compliance and does not affect the validity of any transactions or agreements entered into by the bank with its customers. It also noted that the action is without prejudice to any further regulatory measures that may be initiated against the bank.