Case Brief
What Happened
RBI, by order dated November 11, 2024, imposed a penalty of Rs 6.34 lakh on The Jaynagar Mozilpur People’s Co-operative Bank Ltd., West Bengal. The bank had been directed to deposit a specified amount in the MSE Refinance Fund administered by SIDBI due to shortfall in its PSL achievement for FY 2022-23, but it failed to comply even after a cautionary letter and subsequent show-cause process. RBI concluded that the non-compliance was sustained and warranted a monetary penalty under the Banking Regulation Act, 1949.