The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on Rajapur Urban Co-operative Bank Ltd., Rajapur, Maharashtra, for non-compliance with RBI directions on loans and advances to directors, their relatives, and firms or concerns in which they are interested. The action followed a statutory inspection of the bank with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance and subsequent correspondence, the RBI issued a show-cause notice to the bank, seeking an explanation as to why a monetary penalty should not be imposed. After examining the bank’s reply and additional submissions, the RBI found that the charge was sustained. The inspection revealed that the bank had sanctioned a loan to a relative of one of its directors, in violation of RBI norms.