Case Brief
What Happened
By an order dated May 20, 2025, RBI imposed a monetary penalty of ₹2.00 lakh on Prathamik Shikshak Sahakari Bank Ltd., Satara, Maharashtra. The penalty was imposed after RBI’s inspection and subsequent proceedings found that the bank, despite being a Salary Earners’ Primary (Urban) Co-operative Bank, had sanctioned loans against fixed deposits to non-members without meeting the FSWM criteria, and had also sanctioned gold loans to non-members. RBI cited Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.