Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 4.20 lakh on Laxmibai Mahila Nagrik Sahakari Bank Maryadit, Gwalior, Madhya Pradesh, by order dated February 13, 2025. RBI found that the bank had sanctioned loans to directors and related parties in violation of its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, and also failed to deposit the specified amount into the MSE Refinance Fund maintained with SIDBI against its shortfall in Priority Sector Lending achievement for FY 2022-23, despite a cautionary letter. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and is without prejudice to any other action RBI may initiate.