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RBI ReportPublished 13 Jul 2026Read time 1 minEffective 29 Jun 2026

RBI Fines Ahmednagar Co-op Bank for Giving Loan to Director

RBI fined Ashok Sahakari Bank, Ahmednagar ₹10 lakh for giving loan to a director.

Impact
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For information only. Not financial advice. Verify with official sources before taking any action.

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What happened

RBI fined Ashok Sahakari Bank Ltd. in Ahmednagar, Maharashtra ₹10 lakh. The bank broke a banking law by giving a loan to one of its own directors. This is not allowed under Section 20(1) of the Banking Regulation Act, 1949.

Why it matters

Banking rules stop banks from giving loans to their own directors to prevent conflicts of interest. RBI inspects banks regularly to protect depositors. This penalty signals that RBI is actively monitoring cooperative banks for rule violations.

What to check

  • →Check if you have a savings or fixed deposit account with Ashok Sahakari Bank Ltd., Ahmednagar.
  • →Find out if your deposits are covered under DICGC insurance, which protects deposits up to ₹5 lakh per depositor per bank.
  • →Look at RBI's website for any further actions taken against this bank.
  • →Ask your bank branch if there are any service disruptions or changes you should be aware of.
  • →Consider reviewing whether your total deposits in any one cooperative bank stay within the ₹5 lakh insurance limit.

This is general information, not financial advice. Check your own position with your lender or an adviser.

What this means for you

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