Indore Paraspar Sahakari Bank Maryadit, Indore (MP)

RBI imposed a monetary penalty on Indore Paraspar Sahakari Bank Maryadit, Indore (MP) for non-compliance with certain RBI directions on Priority Sector Lending (PSL) - Targets and Classification, and a specific direction requiring contribution to the MSE Refinance Fund administered by SIDBI due to shortfall in PSL achievement for FY 2022-23. RBI said the bank failed to deposit the specified amount within the prescribed time, even after issuance of a cautionary letter advising compliance. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The bank must absorb the monetary penalty and may also face further RBI action, as the release says the penalty is without prejudice to any other action that may be initiated. The underlying compliance lapse concerned PSL shortfall-related contribution obligations, so the immediate impact is financial and supervisory rather than an operating restriction on customers or business lines.