Case Brief
What Happened
By an order dated October 03, 2024, RBI imposed a monetary penalty of ₹1.10 lakh on Nabapalli Co-operative Bank Limited. The penalty was for non-compliance with RBI’s specific directions requiring the bank to deposit a prescribed amount into the MSE Refinance Fund administered by SIDBI against its shortfall in achieving the Priority Sector Lending target for FY 2022-23. RBI stated that the bank failed to deposit the amount even after a cautionary letter was issued. After considering the bank’s written reply and oral submissions, RBI found the charge sustained and imposed the penalty under the Banking Regulation Act, 1949.