Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Guna Nagarik Sahakari Bank Maryadit, Guna, Madhya Pradesh. The penalty was levied for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, specifically the bank's failure to deposit the required amount into the MSE Refinance Fund administered by SIDBI against its shortfall in PSL achievement for FY 2022-23. RBI noted that a cautionary letter had been issued, but the bank still did not deposit the specified amount within the prescribed time. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 because the bank did not comply with RBI directions on Priority Sector Lending (PSL) - Targets and Classification and a specific direction to contribute to the MSE Refinance Fund administered by SIDBI. The bank was required to deposit a specified amount in the fund against its PSL shortfall for FY 2022-23, but failed to do so even after a cautionary letter and within the prescribed time. After considering the bank's reply and oral submissions, RBI sustained the charge and imposed the penalty.
Operating Impact
The bank must absorb the financial penalty and remain compliant with RBI’s PSL-related directions going forward. There is no stated operational restriction in this order, but the bank remains exposed to any further regulatory action for the same non-compliance if RBI chooses to pursue it.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 12 Dec 2024
- Effective From
- 12 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank