What specific violation led to this penalty?

The bank failed to adhere to the regulatory ceiling on certain advances, as per RBI's exposure norms for UCBs.

Does this penalty affect the bank's customers?

No. RBI clarified the action is based on regulatory compliance deficiencies and does not question the validity of any customer transaction or agreement.

What legal provisions were used to impose this penalty?

RBI used powers under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

Home › Circulars › RBI press release 62965

RBI fines Wardha UCB ₹20,000 for exposure norm breach

Source: Reserve Bank of India · Press Release prid 62965 · ~1 min read

RBI imposed a ₹20,000 penalty on Wardha District Ashirwad Mahila Nagari Sahakari Bank for violating exposure norms. The bank exceeded prescribed ceilings on certain advances, as found during its March 2025 statutory inspection. This is a compliance action, not a judgment on customer transactions.

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Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62965 — summary by BankPulse (bankpulse.ai).

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RBI fines Wardha UCB ₹20,000 for exposure norm breach

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