Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Lalbaug Co-operative Bank Ltd., Vadodara, Gujarat for failing to comply with RBI’s directions on Priority Sector Lending (PSL) targets and specific directions to contribute to the MSE Refinance Fund administered by SIDBI. RBI said the bank had a shortfall in PSL achievement for FY 2022-23, was directed to deposit the prescribed amount, received a cautionary letter, but still did not make the payment. After considering the bank’s reply and oral submissions, RBI sustained the charge and imposed a penalty under the Banking Regulation Act, 1949.